Apple's Coming iTV: The Saving Grace for This Crashing Stock?

In this video, Analyst Andrew Tonner talks about Apple's next big thing: the iTV, which should be a revenue driver for the company in the future.

Analysts at Morgan Stanley expect the customer base for the smart TV to be around 10% of iTunes account holders. Even with a low selling price, that could mean $68 billion in additional revenue for Apple, which in turn would yield a rough EPS of $18. Andrew also points out that the iTV could lead consumers to use more Apple products, including the iCloud and iTunes.

In short, the iTV could be massive for Apple in terms of revenue and future growth opportunities. Check out the video for more details.

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


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Comments from our Foolish Readers

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  • Report this Comment On April 20, 2013, at 6:06 PM, midnightmoney wrote:

    I've been waiting for this all week:)

  • Report this Comment On April 20, 2013, at 8:35 PM, DanManners wrote:

    I wish you were right Andrew but I have bad news for you. Tim Cook is not coming out with an Apple TV anytime soon. And even if it did it would not add $ 18 to the earnings.

    TVs are dropping in price everyday. Sharp is dying. Sony is almost dead. Only Samsung is thriving because they have put out the set that Apple was supposed to put out 2 years ago.

    Cook said he is looking at TV. That means 10 years until he does anything. He cant even launch a new iphone. When you watch a movie set in California, will the Golden Gate bridge look collapsed. The TV will have so many issues. Just like the map ap which was a disaster. Apple is dying and no TV is coming out. No watch or CHina Mobile deal. The stock is on its way to 300 and lower. Auerbach Grayson's top analyst Richard Ross said Apple is going to 313. 20% more downside. And that is being optimistic.

    Apple is a falling knife and after this earnings and the June 2013 qtr earnings in July Apple will be well below 300 as the earnings will be a disaster.

    Margins, ASP and stock price are all tumbling. Hey Cook had no chance. He is no Steve Jobs. Look at how Ron Johnson fared at JCP. Scott Forstall with Maps ap. Both got fired.

    Apple is destined to keep going down. I predict it will not ever rally again. I predict it will never be over 400 again. I predict it will be below 350 next week and by July below 300. I predict by next year it is below 200. It could have 500 billion in cash and it won't help. Blackberry has more cash percentage wise than Apple. Doesn't matter because the cash coming in is going to dry up and they will need that cash to survive.

    When Cook gets fired the stock will rally. I see a 2016 stock price of below $ 100 and dropping until it hits zero. Cook is the best CEO to see this happen.

  • Report this Comment On April 21, 2013, at 3:12 AM, DanManners wrote:

    Meant to say Nokia has more cash percentage wise than Apple. Please keep your nasty comments to yourself.

  • Report this Comment On April 27, 2013, at 5:42 PM, amaradio wrote:

    DanManners, how can you see a 2016 stock price under $100? I don't think you see much of anything. Didn't you stare at the sun too long and then opted to give yourself lasik eye surgery by pointing a flashlight at your eye? You're thoughts are moronic and your reasoning is worse. I feed your thoughts to the birds outside. I hope you short sell Apple because they are immensely cheap right now and will be at $600 a share by December 2013; I guarantee it. Reasons being: Apple's iPhone 5s will be the biggest selling phone in history. The iPhone 3 and iPhone 3s had similar exterior styles; only difference was software upgrades. The iPhone 4 and 4s had similar exteriors. Again the only difference being software. The iPhone 5 was similar in exterior to the 4 and 4s just lighter and longer. The iPhone 5s will have a completely different exterior body style and better performance all around. All the people that own 4 or 4s did not upgrade to the 5 because of the similarities. The 5s will appeal to everyone and the margins on it will be great. Add in speculation of an iWatch and iTV and this stock will be $600 by year's end. I smartly own Apple stock and cannot wait for it to take off to the moon with me hitching a free ride. Those that don't will wish they did!

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