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Apple TV Is All Grown Up Now

After long calling its Apple (NASDAQ: AAPL  ) TV segment a "hobby", the company sold $1 billion worth of Apple TVs over the last fiscal year, a figure that includes content sales. Though $1 billion is only a drop in the bucket for a company that did $174 billion in revenue last year, this significant increase in Apple TV sales volume was enough to make CEO Tim Cook note that it's "difficult to call it a hobby these days."

In this video from Tuesday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu take a look at Apple TV's historic sales volumes compared to today, and they also discuss the set top box market as a whole. The space was once seen as highly subsidized and difficult to disrupt for that reason; a consumer base that is willing to pay more for unique set top box offerings may open the door to a whole host of tech heavyweights interested in competing in this space.

So is Apple destined to win the war over the cable companies for your living room?
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple.

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Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

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