Neil Hughes
Analyst Gene Munster with Piper Jaffray on Monday issued a note to investors in which he reiterated his belief that Apple plans to launch a connected, full-fledged HDTV in the next 2 to 4 years. He acknowledged recent rumors that the existing Apple TV set top box will be renamed iTV, but said that the anticipated product update will only be a stepping stone to the eventual flat panel living room TV.
A key component for the Apple television set, Munster believes, will be Apple's soon-to-launch data center in North Carolina. He believes the massive location could serve as a hub for a cloud-based iTunes service that would allow users to stream their catalog of movies and TV shows.
Munster believes the upcoming Apple TV update will add an App Store, allowing users to download applications to run on the device. He also sees the product having a lower price and less internal storage, as more content is streamed without a need to save it on the device.
The new Apple TV would be an attempt by Apple to fight the set top box model that currently exists in America. In June, Apple Chief Executive Steve Jobs explained that the Apple TV remains a hobby because it's hard to break in to a market where consumers are used to receiving a cable box for free or for $10 per month.
"The only way that's ever going to change," Jobs said, "is if you can really go back to square one, tear up the set top box, redesign it from scratch with a consistent UI across all these different functions, and get it to consumers in a way that they're willing to pay for it. And right now there's no way to do that."
But a new cloud-centric Apple TV is rumored to cost just $99, potentially making the device a much more attractive option for consumers.
When Apple can overcome the "primary" hurdles of set top boxes and live TV, Munster believes that is when the company will strike with an Internet-based iTunes TV pass for $50 to $90 per month. An App Store could also offer games, and services like Netflix and Hulu Plus, built right into the set.
As he has said before, Munster believes Apple could push into the hDTV market in the next 2 to 4 years, and could "move the needle" in a market that as of January of 2010 was worth more than $30 billion.
"Apple's ability to deliver hardware, software and content that could replace an entire entertainment system with a single TV, puts Apple in a unique position for the emerging connected TV cycle," he wrote. "Apple already has several of the key ingredients for success in the connected TV market, many of which would differentiate Apple from current market players."
Andrew Orr
Malcolm Owen
William Gallagher
Amber Neely
Christine McKee
Andrew O'Hara
101 Comments
Tooting my own horn without shame:
http://forums.appleinsider.com/showt...45#post1481645
http://forums.appleinsider.com/showt...65#post1643765
http://forums.appleinsider.com/showt...77#post1510877
http://forums.appleinsider.com/showt...89#post1439789
Snappy!
I just can't see it happening - content producers are going to play hard ball and make life as difficult as possible for Apple, which in turn will make Apple look bad as the TV will have very limited content. Secondly, the whole world has just upgraded to flat panel hi def TV's, the price of which are now very low (you can get a very decent samsung tv in the UK for around £400 - £500), most people aren't ready to make that investment again within a year or two - it's the same reason OLED TV remains so expensive (not enough sales to lower the price) and 3D TV doesn't have a chance in hell in the mainstream (no 3D content out there, so why pay 1000s more for the potential?)
The average consumer is being drowned in a barrage of new technology, and most have now bought their family TV which I'd imagine for most families would see them through at least three or four years.
Apple need to focus on a box capable of delivering 1080 hi-def content, with full tvr capabilities and tv tuner, along side all the strengths/functionality of the iOS with app store, games and face time (a return of the external iSight camera to fix on your telly for video chat in the living room). It would also need a Blu-Ray player for most normal consumers to consider the purchase. If they deliver this, then people will be a little more forgiving as more content comes online over time. It would also need blue-tooth support for keyboard and other input device. Wireless, simple streaming of content from computers/laptops/iPads in the household would be an additional killer feature.
A box which offers only limited content from limited content providers will remain a hobby. A single set top box that replaces all others and introduces new functionality would revolutionise the home media set up.
If anyone in their right mind thinks an Apple TV, integrated into a TV or not, could possibly replace that big stack of stuff in the Piper illustration, they're massively deluded.
How will an ATV replace an audio receiver for example? Will it amplify Dolby True HD and DTS Master and have a big row of 7.1 speaker terminals? Somehow, I suspect not.
Will an ATV replace an Xbox 360 or a PS3? I'm sure it will play casual games and the like, but will an ATV be hosting the latest Halo, GTA, God of War, or Gran Turismo anytime soon? Again, I suspect not. Gaming in particular requires absolutely massive investment and commitment on all fronts which Apple have never shown the slightest bit of interest in. That the iPhone has proved popular for small scale gaming happened by accident, and it's an epic leap to take that up to the level Microsoft, Sony, and even Nintendo operate on.
And then there's the issue of replacing the humble DVR/Cable set-top box. Obviously this will depend on content and pricing, which Apple are currently miles behind on. I realise things are a little better in the US, but here in the UK the iTunes store is barren, grotesquely over priced, and usually not in even 720p, let alone 1080i or 1080p. Even if Apple was committed on this front would the providers play ball? What's in it for them to lessen the appeal of their own TV channels and platforms by offering everything a la carte to Apple?
Jobs was right when he said there was no way to break into this market.
It's been more than two years I have HDTV via internet and I pay CHF 30 which is US $ 28.91.
As usual, the Americans are way behind on technology so in order to catch up with others they come with Apple TV and a service that's only available in America, not even Canada... like Hulu etc. Hulu is gay anyway...
The reason? Some sort of stupid and primitive TV law that forbids you from broadcasting the most interesting TV shows internationally, then they wonder why there is so much piracy... Yeah, well guess what, with a little bit of online research people will figure out how to download an HD episode for free in a matter of minutes and put it on their HD streaming devices and watch them on their HDTVs... So if you ever wonder why there is so much piracy, it's because of some unreasonable people who are only interested in coming up with pointless laws restricting and complicating entertainment.
Ahw... all this consumer stuff... how I long for the days when it was Apple Computer...