Paying a premium for Apple's HDTV

Posted by Trent Nouveau

Apple is reportedly working on a full-fledged HDTV that is expected to redefine the conventional television market.

Interestingly, at least 47% of consumers queried for a recent poll say they were willing to pay a 20% premium for an-Apple branded TV set. 46% said they were comfortable spending $1,000, while 10% said they were willing to shell out over $2,000.

On average, respondents said they would pay $1,060 for an "iTV," which is a 20 percent premium over the $884 paid for the current average television set. Interestingly, respondents ages 18-29 showed the most willingness to invest in an Apple television, indicating they would pay a 32% premium for such a device.

11% of respondents said they would be "extremely interested" in purchasing a so-called "iTV" from Apple, while 36% confirmed they were "somewhat interested."

The survey - conducted by AlphaWise and Morgan Stanley - also determined that only 18% of homes have a smart TV, while 13% of respondents said they didn't know whether their TV is considered "smart."

"This suggests that Smart TVs currently available on the market do not offer easy-to-use software to integrate Internet content into users' TV experience," Morgan Stanley analyst Katy Huberty told AppleInsider.

According to Huberty, 11% of respondents saying they are "extremely interested" in an Apple television effectively translates to over 13 million potential units sold in the US, while another "somewhat interested" 36% would be an incremental 43 million units.

Essentially, this means Apple maintains the potential to disrupt the TV market - similar to how Cupertino's flagship iPhone redefined the mobile paradigm with easy (integrated) Internet and app access.