Apple’s “Hobby” Grows to Make It Third Largest Global Set-Top Box Company, IHS Says

Category:

Tuesday, May 31, 2016 9:03 am EDT

Dateline:

ENGLEWOOD, Colo.
"The STB market has certainly grown since 2007, when Steve Jobs originally described the Apple TV business line as a ‘hobby,’"

ENGLEWOOD, Colo. (May 31, 2016) – Apple’s popular Apple TV devices have propelled the company into third-ranked position in 2015, based on revenue in the overall global set-top box market, from ninth place in 2014. The surge is courtesy of continued strong growth in consumer retail over-the-top television (OTT) boxes, and the consolidation of the top players of the global set-top box market with Arris's acquisition of Pace and Technicolor's acquisition of Cisco's set-top box division, which were finalized last year. Bringing Apple into global contention from a unit-shipment standpoint, more than 10 million Apple TVs were shipped in 2015 -- the fifth largest volume in the world -- following Arris, Technicolor, and Skyworth and ZTE, according to IHS Inc. (NYSE: IHS), the leading global source of critical information and insight.

 “The STB market has certainly grown since 2007, when Steve Jobs originally described the Apple TV business line as a ‘hobby,’” said Daniel Simmons, director of connected home for IHS Technology. “Now we’re seeing sales of Apple’s consumer devices in the millions, which has catapulted the company ahead of leading STB manufacturers that ship to pay-TV providers. Apple TV’s particular success is a result of translating consumption habits from across Apple’s wider device ecosystem onto the TV screen.”

In 2015, global set-top box shipments grew 4.8 percent, year over year, to reach 353 million units, according to the IHS Set-Top Box Intelligence Market Monitor. This growth was driven by internet-protocol television (IPTV) in China, where telecommunications companies are pushing IPTV services to generate returns on their investments in fiber to the home (FTTH), which connects buildings with high-speed internet access. Revenue increased by 3.4 percent to reach $5.7 billion in the fourth quarter of 2015, compared to the previous quarter, partially driven by next generation device launches of Apple, Amazon, and Roku. Revenue for 2015 fell 5.4 percent to $22.2 billion, due to reduced demand for high value STBs in North America, primarily caused by poor pay-TV performance in the region.

“The new positioning of Apple at the top of the set-top box market reflects several trends,” Simmons said. “Pay-TV specific set-top boxes are becoming less important for consumers to access premium content, because Netflix, HBO Go and other OTT video platforms now offer top-tier content to retail OTT STBs. As retail STBs have grown in the market, traditional pay-TV set-top vendors have been forced to re-position themselves, with significant consolidation at the top of the market, diversification toward software and services in the middle, and low-end vendors moving toward broader volume.”

 For information about purchasing IHS services and reports, contact the sales department at IHS in the Americas at (844) 301-7334 or AmericasLeads@ihs.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihs.com; or Asia-Pacific (APAC) at +604 291 3600 or technology_APAC@ihs.com.

 

About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 140 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs nearly 9,000 people in 33 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2016 IHS Inc. All rights reserved.

Related Materials: