Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Apple's AirPlay Could Be a Big Hit

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Apple's (Nasdaq: AAPL  ) Airplay audio streaming system is a technology with the potential to become a Top 10 consumer electronics product, market research firm iSuppli said on Thursday.

AirPlay is a system that streams audio, either wirelessly or over Ethernet, to third-party speaker docks, A/V receivers, speakers and more. Far from just being a way to transmit video from the iPad to the AppleTV, as Apple CEO Steve Jobs demonstrated at its special event on September 1, AirPlay spans the entire audio industry, iSuppli said.

"AirPlay represents another effort by Apple to stake a leadership position in the burgeoning connected home market," said Jordan Selburn, principal analyst, consumer electronics, for iSuppli. "The technology leverages Apple's dominant position in the MP3/PMP player market. With AirPlay, the iPad, iPod and iPhone can be the servers for a home filled with music -- and music distribution via iTunes."

As evidenced by developments at the IFA consumer electronics show in Berlin this month, networked audio is gaining momentum, whether in complete systems like Sonos or in general-purpose equipment such as audio-video receivers supporting open standards such as DLNA. In addition to home music libraries, Internet Radio is also driving an increasing demand for audio that can be accessed seamlessly around the home.

However, the seamless part seems to be the major sticking point, the primary reason being that home audio networks have not grown to the level expected given the consumer's seemingly insatiable appetite for music.

"Addressing the seamless connection of audio is the area where AirPlay has the potential to be a truly disruptive force in the market, potentially turning it into a Top 10 consumer electronics segment with unit volumes perhaps even comparable to televisions," Selburn said.

The global television market is expected to amount to more than 230 million units in 2010, iSuppli predicts.

"Apple has worked some impressive magic for the consumer electronics market in the past," Selburn observed.

The portable audio market is one example, with the evolution from removable media, such as tape or CD-based Walkman-type products, to MP3 players, which saw growth explode when Apple introduced the iPod.

The iPod's simplicity and push-button interface to iTunes was the major factor of its success, delivering a simple and compelling end-to-end solution and consumer experience, according to iSuppli.

The home audio market could well be on the verge of a similar explosion if Apple does the same with wireless home audio networking as it did with the iPod. "This time, the consumer will be transitioning from the docking station to the next phase - the networked audio client," iSuppli said.  "When consumers don't have to Google various error codes and reset firewalls in order to enjoy music libraries and Internet radio throughout the home, the networked home audio market could reach a true crescendo."

International Business Times, The Global Business News Leader

Apple is a Motley Fool Stock Advisor pick. The Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1318495, ~/Articles/ArticleHandler.aspx, 10/23/2016 12:43:22 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
AAPL $116.60 Down -0.46 -0.39%
Apple CAPS Rating: ****