Not that long ago, Apple (NASDAQ:
) was largely expected to design, manufacture and release a large
television set. Analysts were
sure of its existence
over the price. One analyst estimated that a 50-inch Retina
Display could cost
as much as $25,000
-- roughly the same price as a 4K Ultra-HD television set.
Last May, after Foxconn's CEO reportedly confirmed that Apple
developing its first television
, the manufacturer
Even then, rumors of an Apple TV continued to circulate. It
was not enough that Apple had built a successful set-top box --
analysts and consumers were equally convinced that the company
would release an actual television set.
Now those rumors have mysteriously disappeared. Media
attention has miraculously shifted to the iWatch concept, which
has been receiving from all the big players, including Bloomberg
and The Wall Street Journal. If the reports are accurate, Apple
is currently forming a team of more than 100 product designers to
build a wearable computer that may or may not be the size of a
How can a watch be more exciting than a television set? Simply
put, there has been little to no evidence confirming that Apple
intends to build a TV. However, there have been several reports
claiming that Apple is already working on the iWatch. Believe it
or not, real products are far more exciting than fictional items
concocted by overzealous analysts.
That said, Apple co-founder Steve Jobs did tell Walter
Isaacson (author of the official Jobs biography) that he had
the TV code. This indicated that, at one time or other, Apple had
fully intended to produce a TV set. (Jobs said this himself: "I'd
like to create an integrated television set that is completely
easy to use.")
Sixteen months have passed since that quote surfaced, but
Apple's TV plans remain a mystery.
It could be that Apple has realized that it is pointless to
enter the TV business right now. As a low-margin industry, most
TV makers . Television sales picked up briefly when the high-def
transition occurred, but that is over now. Most consumers
(especially young TV watchers, sports lovers and gamers) have
already purchased at least one HDTV. It would be very difficult
for Apple to persuade those individuals to go out and buy another
set -- particularly one that is likely to sell at a premium.
There could be another reason why Apple has not released a TV,
however: new and unexpected competition from the likes of Intel
) and Samsung. Intel from Apple, Netflix (NASDAQ:
) and Google (NASDAQ:
) to build a new TV service and an accompanying set-top box.
Samsung has heavily invested in a number of Smart TV functions,
such as apps, games and motion controls -- all things Apple was
expected to bring to the TV industry.
If Apple wants to build a TV that is truly different, it is
going to need more than apps and a fresh interface to motivate
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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