
From Apple's perspective it isn't the same thing. They've entered markets as legs for their stools where there have been massive profits to be made. They've been alright with low volume sales so long as they were selling the best product. Does that work the same way in the HDTV business? Do the companies selling the best product make a great profit on TVs?
From Apple's perspective, it's exactly the same thing.
A decade ago, the MP3 player market was a mess. Zillions of suppliers of mostly junk, much of it at dirt cheap prices. There was no real market leader and no real differentiation between the products. The market was driven mostly by price and there was no one offering a premium product. Apple introduced the iPod - which did very well.
Five years ago, the mobile phone market was a mess. Zillions of suppliers of mostly junk, much of it at dirt cheap prices. There was no real market leader and no real differentiation between the products. The market was driven mostly by price and there was no one offering a premium product. Apple introduced the iPhone - which did very well.
A few years ago, the PC tablet market was a mess. Zillions of suppliers of mostly junk, much of it at dirt cheap prices. There was no real market leader and no real differentiation between the products. The market was driven mostly by price and there was no one offering a premium product. Apple introduced the iPad - which did very well.
Today, the TV market is a mess. Zillions of suppliers of mostly junk, much of it at dirt cheap prices. There was no real market leader and no real differentiation between the products. The market was driven mostly by price and there was no one offering a premium product. The market dynamics are not that different from what Apple has been doing for the past decade.
Why is everyone saying that the TV market is so unrelated to anything Apple has done? It's not. (And the argument that it's more expensive doesn't wash, either. Apple sells plenty of computers in the $2 K range. Even the iPhone at $650-850 and the iPad which is pushing $1 K at the high end are in the same ballpark when you consider that most people replace their phones every couple of years but keep TVs much longer.
Not that I'm not saying that it's going to happen. I don't have any idea what Apple might have in their labs or what price point they would be able to hit while maintaining profit margins. But to immediately discard the idea because it's so 'different' is just wrong.

If Apple does enter this market I think it's clear that they think they can have great margins and make a billions doing it, but from our PoV we need to determine if they will. Are there companies that sell the displays to others for TVs that actually make a good profit or is the profit held by those that make the displays?
Let's assume for a minute this is going to happen in 2012 or 2013. How will this be achievable? What is Apple's angle here? What will they offer that others have not? On Friday I did a lot of driving; so much so that I was able to listen to all of the audio from Steve Jobs at All Things D. What he stated over-and-over again was that it's all about the software. So where is the software that will make someone ditch a $99 box for a $2000 TV? Where is the software that will make someone put a 55" (what I read will be the bare minimum size) in their den or bedroom where it's too large or in some other room where it simply doesn't fit right? Remember that TVs, among all other electronics today are oft purchased because of the room space they will occupy.
PS: I'm also still waiting on a viable answer to what nut Apple/Jobs could have cracked. Personally I think it has to do with getting around the content companies not the obvious and simple solution of sticking an Apple TV into an HDTV.
I don't have any idea - which is why I can't predict what Apple will do. But it's not completely implausible.
If I had to guess, I would venture that the 'nut' Jobs claims to have cracked has to do with ease of use, simplicity, and integration. For a pretty substantial portion of the population, current TVs are far too complicated. My mother wouldn't even have a DVD player in her house until one of the kids programmed a remote so that she could do both the TV and the DVD player from a single remote. I have to laugh every time my ex tried to watch a movie. She couldn't figure out how to change from one device to the other - and I even programmed a Harmony remote to automate the process. The current TV system is inordinately complex and difficult compared to a Jobsian ideal. Even the idea of using the Apple TV in combination with a conventional TV set is more complicated than if everything is included in a single device.
Only time will tell.









