Apple’s just released second generation Apple TV is off to a brisk start, and the consumer interest is so high that the company is having trouble keeping inventory in its stores. The new version of the streaming home entertainment appliance was released about a week ago, marking the first major change to the device since it was first introduced in early 2007.
JMP Research analyst Alex Gauna has been checking in with Apple’s retail stores around the U.S., and it seems most are seeing demand outstrip supply, according to Barrons.
The second gen Apple TV
“We were not particularly surprised when we couldn’t get our hands on the Apple TV over this past introductory weekend in San Francisco,” Mr. Gauna said. “But when the scarcity persisted into this week it got us to checking and we subsequently learned that stores across the nation were selling out of their inventory on the same day as receipt in Boston, Chicago, New York and Washington D.C.”
He added that it looks like the Apple TV is selling out at more than just the 20 stores his team checked.
Based on current estimates, it looks like Apple TV is now selling at a rate equivalent to about a million units a quarter. Part of that interest is the fact that Apple sells the second generation Apple TV for only US$99. The lower price point, he said, “is resonating with consumers.”
The new Apple TV model drops its internal hard drive in favor of a media streaming design and a TV and movie rental program. It’s substantially smaller than the previous model, and includes Netflix streaming support, too.
Mr. Gauna is rating Apple at “Market Outperform” and set his target price for the company’s stock at $335. Apple is currently trading at $285.60, down 3.34 (1.16%).