An analyst has bucked the trend, pouring cold water on rumours of an Apple television, claiming that Apple wouldn't waste the retail space, and that there's little chance of it doing a deal with US broadcast and cable providers.
Pacific Crest analyst Andy Hargreaves has issued a note to clients suggesting that they should be skeptical about claims that Apple is working on a TV set.
His reasons for the skepticism, noted by Fortune: “Investment in Apple television makes little sense without a unique TV content offering. An Apple television could drive substantial profitability if it helped Apple capture service provider profits. However, we do not expect US broadcast or cable networks to provide Apple content if it risks cannibalizing existing revenue, which makes a unique Apple service and an Apple television unlikely.”
(Not to mention all the networks everywhere else in this world!)
He also notes: “An Apple television would be a terrible use of retail space relative to iPhone, iPad or the Apple TV set-top box. A 46in Apple television would likely generate less than 1/200th the gross profit per cubic foot as an iPhone at retail, and less than 1/50th the gross profit per cubic foot of an iPad. We believe this is critical given the limited inventory space at many Apple and partner stores.”
Yesterday we noted that even long-term proponent of the Apple Television, Enderle Group analyst Rob Enderle had questioned Steve Jobs views of the audience of the smart television he believed he had “cracked”.
“Steve Jobs certainly thought he had come up with something that could transform TVs as he transformed the music industry,” Enderle told Forbes. “But … unlike music, which he liked, he hated TV and thought it contributed to a nation of stupid people. It is far harder to build something that meets the needs of an audience if you think that audience is stupid,” noted Enderle.
The Apple TV rumour was recently stocked by claims that Foxconn had said it was working on the Apple Smart TV, only for the company to deny it had said such a thing.
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Comments received
Dragonfly said on Tue, 15 May 2012
Smart Television would be geared around the current Apple TV, buying content on iTunes combined with bespoke advertising, I can't see much profit for Apple in 'just a TV'.
The live broadcast side of things is also so diverse from country to country and there are companies already making TVs, including Samsung who make their own screens.
Siri wont work across a room, so unless they are thinking iPhone for a remote then I'm not sure where they would be going with this. If SJ came up with something unique, I'm really looking forward to seeing it.
hughmass said on Tue, 15 May 2012
And they said the same about Apple and their making a phone.
Truth is, Apple will lose in the long run if they don't introduce their own smart tv. Sooner or later someone will make one that we all want instead of a desktop, and Apple will no longer be king of the hill.
Hugh
NeilFiertel said on Tue, 15 May 2012
I expect that rather than a new TV, Apple will upgrade the Apple TV box to be siri capable and add other ideas to it. No additional floor space, no need to build a low profit high space device at all..
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