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ROKU (ROKU) Announces the Launch of Its Own Line of Televisions
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Roku (ROKU - Free Report) recently announced that it has launched its own TV lineup, which is split into Roku Select, which offers affordable models and the Roku Plus Series, which provides premium features.
It will be available in the United States from spring 2023 in 11 models ranging from 24” to 75” inches and will be both designed and built completely by Roku.
These Roku-branded TVs will offer an expanded audio ecosystem, in addition to the all-new Roku TV Wireless Soundbar and features like find my remote, rechargeable battery and private listening. This will bring a simple, easy-to-operate and wire-free home theatre set-up to customers.
The newly launched TVs have brought in an added source of revenue for the company along with its streaming platforms and other smart home devices. However, it will be challenging for Roku to create market space for its TVs, given that there are already very trusted TV brands in the market such as Samsung, LG and others for many years now.
Roku to Gain From Its Hardware Business Segment
Roku has recently been making efforts to expand itself into the hardware technology segment and widen its offerings. Prior to Roku-branded TVs, it had also launched a new suite of smart home products including security cameras, video doorbells, lighting and plugs at Walmart’s (WMT - Free Report) online and offline stores.
These smart home products are expected to act like customer acquisition tools for Roku as they can be integrated and connected with Roku’s operating system platform. These provide customers with technology to simplify and enhance their everyday lives.
The competitive edge that Roku believes its hardware product has over other competitors is the pricing. The recently launched TVs could be bought at the low price of $119 while the average price of a smart TV is around $776, per Techpenny.
Roku Smart Home cameras too start below $27 whereas the average price of indoor cameras is around $100, per Security.org. The company believes it has the potential to capture markets and gain customers through its attractive pricing strategy.
However, the current macroeconomic conditions can be a headwind for Roku. The global chip shortage is ongoing and could even worsen in the coming future given that China, a leading supplier of it, is facing a new wave of COVID-19. This could hinder the production of TVs and smart home products and bring down sales.
Shares of Roku have declined 78.2% in the last year compared with the Zacks Consumer Discretionary sector, which fell 31.9% in the same period.
Some better-ranked stocks in the same sector are Liberty Media (FWONK - Free Report) and Royal Caribbean Cruises (RCL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 3.9% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.
Shares of Royal Caribbean Cruises are down 32.5% year over year. The earnings estimate is pegged at a loss of $1.34, which has been constant over the past 30 days.
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ROKU (ROKU) Announces the Launch of Its Own Line of Televisions
Roku (ROKU - Free Report) recently announced that it has launched its own TV lineup, which is split into Roku Select, which offers affordable models and the Roku Plus Series, which provides premium features.
It will be available in the United States from spring 2023 in 11 models ranging from 24” to 75” inches and will be both designed and built completely by Roku.
These Roku-branded TVs will offer an expanded audio ecosystem, in addition to the all-new Roku TV Wireless Soundbar and features like find my remote, rechargeable battery and private listening. This will bring a simple, easy-to-operate and wire-free home theatre set-up to customers.
The newly launched TVs have brought in an added source of revenue for the company along with its streaming platforms and other smart home devices. However, it will be challenging for Roku to create market space for its TVs, given that there are already very trusted TV brands in the market such as Samsung, LG and others for many years now.
Roku to Gain From Its Hardware Business Segment
Roku has recently been making efforts to expand itself into the hardware technology segment and widen its offerings. Prior to Roku-branded TVs, it had also launched a new suite of smart home products including security cameras, video doorbells, lighting and plugs at Walmart’s (WMT - Free Report) online and offline stores.
These smart home products are expected to act like customer acquisition tools for Roku as they can be integrated and connected with Roku’s operating system platform. These provide customers with technology to simplify and enhance their everyday lives.
The competitive edge that Roku believes its hardware product has over other competitors is the pricing. The recently launched TVs could be bought at the low price of $119 while the average price of a smart TV is around $776, per Techpenny.
Roku Smart Home cameras too start below $27 whereas the average price of indoor cameras is around $100, per Security.org. The company believes it has the potential to capture markets and gain customers through its attractive pricing strategy.
However, the current macroeconomic conditions can be a headwind for Roku. The global chip shortage is ongoing and could even worsen in the coming future given that China, a leading supplier of it, is facing a new wave of COVID-19. This could hinder the production of TVs and smart home products and bring down sales.
Shares of Roku have declined 78.2% in the last year compared with the Zacks Consumer Discretionary sector, which fell 31.9% in the same period.
Zacks Rank & Stocks to Consider
Roku currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same sector are Liberty Media (FWONK - Free Report) and Royal Caribbean Cruises (RCL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 3.9% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.
Shares of Royal Caribbean Cruises are down 32.5% year over year. The earnings estimate is pegged at a loss of $1.34, which has been constant over the past 30 days.