A television combining music, TV and film downloads with your photo and home movie collections, along with digital television and interactive services powered by the Internet, could be Apple’s next move in the world of consumer electronics.
According to analyst Gene Munster at Piper Jaffray, a leading international investment firm, the introduction of an Apple-branded television, following on from the success of the iPod and iPhone was the "only logical step for Apple".
Apple, suggests Munster, is slowly moving away from traditional computer manufacturing roots to become synonymous with consumer electronics and lifestyle accessories.
"Apple's fantastic ability to create exceptionally user-friendly products could revolutionise TVs just like the iPhone changed the mobile phone market," said Munster.
The analyst claims Apple’s $500 (£338) million deal with South Korea's LG Display to to supply panels last month is proof something is in the air.
In January, LG Display said in a statement to the Korea Exchange: "LG Display has made a long-term agreement to supply a massive amount of LCDs to Apple in the face of uneasy condition of foreign capital inflow amid the global economic downturn."
Picking up on comments made by Apple’s Chief Financial Officer Peter Oppenheimer last summer, Munster said: "Apple have said they will only move into a new market in which they can 'solve a problem for consumers'."
In July 2008, Oppenheimer, told analysts: "We've got a future product transition that I can't discuss with you today". Speculation at the time suggested that new iMacs, iPods and even an Apple-branded mini tablet were on the way.
Oppenheimer did add that the cost of developing the new product was "one of the reasons that we see gross [profit] margin being down sequentially".
Time will tell if Munster has inside information or is simply speculating.
Apple declined to comment.
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Comments received
Tony McGowan said on Mon, 09 Feb 2009
Why do we listen to these people? - all they do is speculate, with as much chance of being right as the average punter after a couple of beers in the pub. And they get paid for it. Bizarre.
Ben L said on Mon, 09 Feb 2009
I call BS on this. The deal was just to provide displays for the iMac, notebooks and cinema displays.
reflexologist said on Mon, 09 Feb 2009
Apple: Buy Elgato EyeTV software (and maybe the hardware). I use it to record hundreds of TV shows & movies which I send it wirelessly to the Apple TV box. Call it all iTV. Make the process simple & seamless the Apple way. Beef up the Apple TV software and allow external drives. Throw in a chromeless iPhone that can watch iTV content (already possible via EyeTV) and off we go.
Why? said on Mon, 09 Feb 2009
AppleTV is wasting enough money. Why bother with this when they could never compete with Sky or other providers.
Brian C said on Mon, 09 Feb 2009
What is there to revolutionise about a TV? You press the button, it comes on. Nothing much else there except volume and a source button. Where Apple could really add value instead is to get a tie-in with the providers and replace the useless front-ends and programme guides from Sky & VirginMedia.
MacWorld Reader said on Mon, 09 Feb 2009
Hmm. Maybe, maybe not. Can we have some better films on iTunes first?
Tom said on Mon, 09 Feb 2009
Has anyone seen the price of Bang & Olufsen's TVs? They're vastly overpriced, underspecced and make Apple look dirt cheap. If Apple brought out a TV, I'm sure they could make it worthwhile and interesting.
Mick said on Mon, 09 Feb 2009
"I'm sure they could make it worthwhile and interesting" - not unless it is priced sensibly and carters for regional markets.
Not in this financial climate.
Adam said on Mon, 09 Feb 2009
Any Apple Television would be damaging the AppleTV unit, which is pushing download sales. Why would Apple look to move into the free-to-air market, which they have shown no interest in and is technologically backward?
The sole possibility is a deal with LG to build AppleTV into LG branded TVs, though I doubt that would happen either.
In this particular market Apple need to be pushing to increase the breadth of film and TV content available on iTunes to make AppleTV a viable alternative to cable, SKY, and public license or free-to-air TV. Until they can do that, and get either the priceof the content or the price of the unit down it'll never be anything more thatn a hobby.
Synthmeister said on Mon, 09 Feb 2009
This really is the dumbest rumor ever. With AppleTV, Apple can exploit the entire cutthroat HDTV market with almost zero risk.
Actually, it somewhat similar to the way Microsoft exploits the computer hardware market. Supply the OS for a tidy profit while the hardware makers beat their brains out over razor thin margins and a never-ending race for the most mega pixels, megabytes and megahertz.
Brian said on Mon, 09 Feb 2009
I believe it. First, Apple likes all in one devices, second, of is a natural complement to iTunes store. I only wonder about the computer possibilities--I doubt it will be a full-blown Mac, but it will, I think, have at least the considerable Internet capabilities of the iPod touch/iPhone, and probably include the ability to run some of the iPhone apps. I want one.
Kevin said on Mon, 09 Feb 2009
Apple, will not ever make a TV, that is a dumb idea, as is the analyst that thought of it.
All they need to do is improve AppleTV more, and I will be inline to buy one. I have a nice Sony 40" LCD, that I am extremely happy with. And would not ever replace.
dougit said on Mon, 09 Feb 2009
Maybe Gene Munster read my blog...I said it first!
www.dougitdesign.com/blog.html
Nathan said on Mon, 09 Feb 2009
Apple can't integrate with BlueRay so why would it be any better TV
dougit said on Mon, 09 Feb 2009
Maybe Gene Munster read my blog...I said it first!
www.dougitdesign.com/blog.html
Joe Anonymous said on Tue, 10 Feb 2009
Yes, it's a dumb idea. But let's play the 'what if' game. IF Apple were to release a TV, what would it look like?
I'd be fairly confident that there would be no tuner in it. I would argue that very few people buying a high end TV watch channels over the air.
Perhaps automatic sensing of input. When you put a Blu-Ray disk into your player, the TV should sense that and automatically switch to that input.
Probably nothing less that 1080p, although that's becoming pretty much standard from several TV manufacturers.
Integrated with AppleTV, of course. Probably thin and light enough to hang on the wall.
What else?
Keith said on Tue, 10 Feb 2009
The major missing component from AppleTV is live TV. Include that and AppleTV would be worth considering.
Keith said on Tue, 10 Feb 2009
The major missing component from AppleTV is live TV. Include that and AppleTV would be worth considering.
Buchanan said on Thu, 12 Feb 2009
The AppleTv is almost there as it is. Relexologist is right. Beef up the AppleTV software and it becomes more enticing. The 3rd party hacks have the ideas, but the cat and mouse they're playing with apple is an issue. Apple buy their ideas and let us have a good rounded product.
Gabriel said on Thu, 12 Feb 2009
If Mr. Munster thinks this is the "only logical step for Apple", then I have to wonder what kind of schizoid dementia he uses for "logic".
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