Apple TV sales slowed down to a 12 percent annual growth rate at an estimated 1.9 million units sold in the second quarter of 2014, according to Strategy Analytics Connected Home Devices (CHD) service report.
Strategy Analytics estimates that Apple TV market share in the OTT Streamer segment has fallen about 10 points from 38 percent in 2012 down to 27 percent in 2014.
OTT Streamer shipments are forecast to rise 54 percent in 2014, reflecting strong demand for affordable delivery of OTT content on TV screens.
"Google and Amazon have staked their claims on the OTT Streamer segment and now the aging Apple TV is lacking features like voice control, gaming support, and most of all, an open app store. Many of those features are rumored to be part of the next generation Apple TV, but delays are impeding its chance to succeed before Google’s Android TV and Amazon’s Fire TV grab a foothold in the market," commented David Watkins, Service Director, Connected Home Devices.
Eric Smith, Analyst, Connected Home Devices said, however, that the next generation Apple TV would be revolutionary if Apple’s negotiations with service providers like Comcast clear the way for 4K video delivery or integrated Pay TV and OTT delivery through a single box.
"To the latter point, technology giants like Intel have unsuccessfully spent hundreds of millions of dollars to break into the Pay TV business; convincing Pay TV providers and content owners to share control of lucrative video content with non-traditional players will continue to be challenging," he said.