STB & Dongle Sales Higher than forecast Thanks to Chromecast

According to ABI Research senior analyst Michael Inouye, the smart set-top box and dongle market is expected to pass 18 million units in 2013 – higher than originally forecast, thanks to strong, early demand for the Google Chromecast streaming dongle. The initial stock of Chromecast devices at online sources such as Amazon sold out rapidly thanks to the low price ($35) and a promotion that included three free months of Netflix.  Meanwhile, customers who purchased the Chromecast at Amazon after the cut won’t get their hands on the product until mid-September, or longer.

Inouye expects more dongle form factors in the smart set-top box market. The price of these devices will also allow lower tier TV manufacturers to separate the connected TV component, keeping prices lower and enabling customers the option to upgrade the connected platform as desired without replacing the TV. Competition from a range of connected CE devices will still remain stiff as the smart set-top box and dongle market offers an equally compelling user experience often at significantly lower price points. At this point “Google’s Chromecast device in particular sets a new low price bar for the connected CE market and as more applications are added to its library its value to price ratio will continue to grow,” according to analyst Michael Inouye.