Piper: Apple's $3.9B component deal more evidence of Apple television

Posted:
in Future Apple Hardware edited January 2014
Apple's recent investment of $3.9 billion in components is likely for device displays ranging from the iPhone to the 27-inch iMac, and could signal Apple's intention to build a television set up to 50 inches in size, investment firm Piper Jaffray believes.



Analyst Gene Munster issued a note to investors on Thursday in which he said recent meetings in Asia -- not with component suppliers -- suggested that Apple has put its secret $3.9 billion investment toward securing displays for its range of products. He said Apple is believed to be investing in manufacturing facilities and securing supply for LCD displays.



The analyst also said that the investment could further signal Apple's intention to enter the television market. Munster has believed for years that Apple will introduce its own HDTV by the end of calendar year 2012 at the earliest.



"While Apple's commitment to the living room remains a 'hobby,' we continue to believe the company will enter the TV market with a full focus, as an all-in-one Apple television could move the needle when connected TVs proliferate," Munster said.



He estimates that 220 million flat panel TVs will be sold in 2012, and 48 percent of those -- or 106 million -- will be Internet-connected. He sees Apple potentially selling 1.4 million units in 2012, which would add $2.5 billion in revenue, or 2 percent, to the company's bottom line.



Munster sees the TV business for Apple growing to 4 billion in revenue in calendar year 2013, and 6 billion in 2014. He said Apple's component investment, believed to be in displays, could allow Apple to procure screen sizes up to 50 inches.







The analyst also noted that Apple has highlighted display technology in the marketing of its products, including the iPhone 4 Retina Display, and the 27-inch iMac LED backlit display. Advanced display technology, Munster said, has become an important part of Apple's business strategy.



Last month, during his company's quarterly earnings report, Apple Chief Operating Officer Tim Cook hinted at his company's long-term component supply contracts, and revealed that the company had invested $3.9 billion. Cook said he felt the secret deals were a "fantastic" use of his company's massive cash reserves, but declined to reveal what the investment might be, because the strategic move is "competitive" in nature.



Cook compared the investment to 2005, when Apple made a major investment by prepaying for flash memory. That long-term deal helped Apple secure enough NAND flash to place it in nearly all of Apple's devices, including the iPhone, iPad and new MacBook Air.
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Comments

  • Reply 1 of 87
    gqbgqb Posts: 1,934member
    Munster is on drugs.
  • Reply 2 of 87
    solsunsolsun Posts: 763member
    not a chance.
  • Reply 3 of 87
    If this prediction wasn't COMPLETELY MORONIC,

    then it's just made to

    create speculative margin..



    So Douche !!!



    ScumBag !!
  • Reply 4 of 87
    The idiocy of this is beyond my comprehension.. Jobs has as much interest getting into a highly mature, commoditized money losing business such as TV (Panasonic can't ake money, Pioneeer couldnt make money with the best product) as he has in putting his body through the rigors of climbing Mt Everest without oxygen.



    Munster has been flogging this TV angle for a while now and it makes zero sense. If Apple really wanted to crush their margins, they'd sell the iPad at 1/2 its price.
  • Reply 5 of 87
    Loving all things apple, this is a win for me. In addition, i'd like to see ALL household appliances designed and made by apple....total integration.....itoaster, macrowave, macstove, ifridge. Then I just sit on my throne and control them all from my ipad. I will change my name to iGod.
  • Reply 6 of 87
    Gene Munster is a retard. I'm surprised he still has a job.
  • Reply 7 of 87
    Quote:
    Originally Posted by solsun View Post


    not a chance.



    Apple has a TV. Its called Apple TV. Why would Apple enter an industry where prcies fall 30% a year and no one has pricing power. By simply improving its Apple TC box, it can access millions without the investment.



    Apple could go the route of licensing an embedded Apple TV to the market leaders.



    Don't believe any of the manufactures are making money in TVs.



    On the other hand Munster may have some "inside" info from a supplier. On the third hand, he could have just dreamed it.
  • Reply 8 of 87
    Prediction: 3.9B will go to glassless 3d screens for next gen iPhones, iPods, and maybe iPads.
  • Reply 9 of 87
    This is all wrong. Forget 3DTV. Apple is going straight to holograms.
  • Reply 10 of 87
    It actually does make sense as long as Apple can produce a better experience than the rest of the market. The interface on most TVs is horrible. By completely integrating the AppleTV interface natively into a TV, you have simplified the TV process. No longer do you need a bunch of separate components and cables, you just need to plug the TV into power.



    3D TV is a niche market, and by all accounts completely sucks right now. If Apple were to get in the game, they would have opportunity to make something that actually stands out in the crowd. The question is whether they have the technology to do it.



    In competing with the rest of the market on TVs, there is a huge range of price/quality available for TVs out there. Apple would obviously fall into the high end of pricing and offer a high end product. It's pretty amazing how fugly some of the TVs are that make it to market.
  • Reply 11 of 87
    You all may be right...but it would be nice.



    As I've said before, I detest the current clunky TV interfaces. I would just love it if Apple made a super thin 50"-90" HDTV with AppleTV included.



    Imagine an Apple 50" TV with only one cable attached, the power cord. No HDMI cables



    My iMac has only the power cord coming out of it! (BT KB, TrackPad & MagicMouse) (No power brick)



    My Brother all-in-one wifi printer has only the power cord coming out of it! (No power brick)



    I try not buy any tech equipment that Apple does not make. I hate cables, power bricks that clutter up my home/office and look terrible too!



    I sold my camera when I got an iPhone 4 and bought the TomTom GPS App (which I highly recommend!) instead of buying a stand alone GPS unit.







    Best
  • Reply 12 of 87
    pmzpmz Posts: 3,433member
    There isn't even the slightest chance of Apple making a television set. There's no reason for it. They can accomplish all needs for the living room with AppleTV, in fact, they already have. It just needs Apps, and faster hardware, which is what iOS 5 and 2011 will be allllll about.
  • Reply 13 of 87
    If they did do it...it would be an LED TV, right? Plasma and LCD are old technology where LED is the brightest, best picture and thinnest, newest tech, right?



    I agree the tv companies were hoping 3D was going to be like "color" TV's were to BW TV's back in the olden days....3D looks like it has fizzled!



    Best
  • Reply 14 of 87
    ihxoihxo Posts: 563member
    the thing with these kind of predictions are, they can always claim that they might be right..... someday....
  • Reply 15 of 87
    Even if Apple could make a spectacular set with ATV built in, you'd still have to pay for cable and deal with their dvr interfaces unless you were willing to give up that functionality. The only way I could envision this working, is if you were able to get apps on your tv that let you watch the programming you wanted. Channel apps for example. If you want ABC, pay for the ABC app, ESPN, pay for that app. It would be an extremely radical move as far as tv is concerned and would greatly benefit the consumer so it will never happen.



    I guess we can all dream of a day where we only pay for the channels we want though.
  • Reply 16 of 87
    I hope it's going towards new iMacs and displays with double the resolutions of today?s i.e. ~ 200-220dpi. Apple won't have to worry about making the OS have resolution independent fonts and having to have all the applications rewrite there applications to work correctly. This way Apple just has to doubles there font sizes and along with it there sharpness. Application developers only have to worry about graphics like icons. It word be the same as going from the original iPhone to the Retina display iPhone.
  • Reply 17 of 87
    Quote:
    Originally Posted by christopher126 View Post


    If they did do it...it would be an LED TV, right? Plasma and LCD are old technology where LED is the brightest, best picture and thinnest, newest tech, right?



    I agree the tv companies were hoping 3D was going to be like "color" TV's were to BW TV's back in the olden days....3D looks like it has fizzled!



    Best



    I don't see Apple getting into this but I would agree that if they ever did it would be LED. While Plasma is older there are some people that are really into this stuff that still swear by Plasma.



    Plasma has its advantages in certain situations but alot of people like LCD and LED because of the brightness. Thats why when you go into the showroom the TV's are set so high you can pretty much get a tan form them.
  • Reply 18 of 87
    Quote:
    Originally Posted by ihxo View Post


    the thing with these kind of predictions are, they can always claim that they might be right..... someday....



    True ihxo. But Apple was slow to the Flash MP3 players and eventually took over that market in short order.



    Slow to the smartphone market and slow to the tablet market and all cases came out with game changers.



    I could see Apple wanting to have all their retail stores be "boutique' consumer electronic stores and in doing so "best" BestBuy!
  • Reply 19 of 87
    Quote:
    Originally Posted by extremeskater View Post


    I don't see Apple getting into this but I would agree that if they ever did it would be LED. While Plasma is older there are some people that are really into this stuff that still swear by Plasma.



    Plasma has its advantages in certain situations but alot of people like LCD and LED because of the brightness. Thats why when you go into the showroom the TV's are set so high you can pretty much get a tan form them.



    Thanks for the answers extremeskater! LED it is then....now I just need Apple to make one!
  • Reply 20 of 87
    Gee whiz guys, seriously ... it's moronic for anyone to say "Apple shouldn't or Apple has no reason to ..." etc. We've heard this all before and what happened?



    remember when Apple had no good reason to sell an MP3 player?

    remember when Apple had no good reason to sell a tablet computer?



    think of a television running iOS with App Store/iTunes built-in and the ability to purchase/rent/download all types of media on a big ass screen ... you don't think that wouldn't be the next big thing on everybody's Christmas list?



    Apple TV right now is still a "hobby" according to Jobs. But think what that might look like if Apple turned it's hobby into a real business. It ain't that hard to imagine really, just start connecting the dots.
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