Originally Posted by jragosta
How about reasons it's not going to happen:
1. TV margins are razor thin.
2. Few consumers are going to pay a significant premium even for a better TV.
3. The market is immensely saturated and competition is intense.
4. A huge percentage of TVs are sold through mass market channels like Sam's Club, Walmart, Big Lots, etc - where there is absolutely no support available and no sales person to explain the advantages of the Apple HDTV.
5. An All-in-One TV makes no sense for home theatre. Can you imagine how bad the sound would be?
And so on.
Some of these negatives are very similar to what people thought about MP3 Players (now known as iPods) and cell phones (now known as iPhones [or smart phones a redefined category.])
Apple could approach TV in a similar way. In answer to your points:
1. Apple could redefine the product, add value competitors cannot reproduce, take the high end lucrative market, and slowly inch down.
2. Apple always targets the small lucrative segment first and lets the competitors fight for scraps.
3. Apple creates a new market and competes with itself. Innovation, quality, value, and scale allows Apple to make fat margins in a thin margin market.
4. Apple will sell at Apple stores and online. People who don't want an Apple TV can go to Walmart et al.
5. Thunderbolt or simple digital out solves that for those who want that experience. iTunes content from my computer delivered through my ATV 2G sounds great on my surround sound system.
And so on.