Apple television with iOS, Siri & FaceTime seen as $100B opportunity

Posted:
in iPod + iTunes + AppleTV edited January 2014
An anticipated Apple high-definition television set, complete with iOS features including Siri voice commands, FaceTime video chat and access to the App Store, would be a strong product in a massive $100 billion market, according to a new analysis.



Brian White with Ticonderoga Securities issued a note to investors on Monday in which he reiterated his belief that prototype television sets made by Apple are "already flowing through factories over in China in early stage pilot and prototype production." That aligns with a separate report from earlier Monday which also said Apple was assembling prototype HDTVs for a potential 2012 product launch.



White said although the current $99 Apple TV set-top box is a "great product," Apple's revenue opportunity with such a device is limited. He said the Apple TV was originally scheduled for a hardware refresh this year, but that update was delayed in a move potentially related to an Apple television set.



"We believe the TV experience is in need of greater simplicity and innovation, providing Apple with opportunity to yet reinvent another product category and develop even closer ties with its customers," White wrote.



He cited research from DisplaySearch, which has estimated that the LCD TV market will generate $102 billion in 2012. He believes Apple could make a splash in that market but maintain its margins by charging a "healthy premium" when compared to competitors.



He sees Apple's so-called "smart TV" carrying a price as high as two to three times greater than competing LCD TVs. But he thinks Apple will be able to justify that price, and find success with consumers, with the company's brand, its "unmatched aesthetics, expansive digital ecosystem and overall quality."



"We believe a product could hit the market in the coming quarters, opening up a new growth category for Apple and driving sales of existing products that play into the Apple digital ecosystem," he said.







In addition to offering Siri and FaceTime on its television set, he believes Apple could also bring its iAd advertising platform as well, allowing developers of third-party applications on the App Store to earn more revenue with software and games written for the HDTV.



Apple's Game Center social network would also be a natural fit for an Apple-built HDTV, White believes. He sees a TV-focused App Store representing an even greater push for Apple into the gaming market.



Speculation regarding an Apple television set has picked up considerable steam since late last week it was revealed that Apple co-founder Steve Jobs revealed to his biographer before he died that he had worked on creating a simple and easy-to-use HDTV. He told author Walter Isaacson that he had "cracked" the concept for such a device.
«13456

Comments

  • Reply 1 of 105
    jragostajragosta Posts: 10,473member
    Whether or not this is true is largely irrelevant at this point. The idiot analysts are already setting up absurd expectations ($100 B in revenues? Give me a break) that it will be impossible for Apple to meet. Now, if Apple only sells $50 B of HDTVs - or doesn't sell them at all but 'only' triples profit in their existing businesses, all the analysts and media can label Apple a failure again.
  • Reply 2 of 105
    tdwstdws Posts: 16member
    If you have to accept the Apple ecosystem and buy content from them, this will be a non-starter. We are not veals in cages.
  • Reply 3 of 105
    veblenveblen Posts: 201member
    I'm fully entrenched in the Apple Ecosystem and I don't think I'd buy one. I have a 48" Sony that is only 3 years old. I've only bought two tv's in the last 12 years. Hooking a $99 appletv up to my tv works for me personally. I wonder how many folks are clamoring for this? Maybe they don't know they want it yet?
  • Reply 4 of 105
    bageljoeybageljoey Posts: 1,728member
    Quote:
    Originally Posted by jragosta View Post


    ... analysts are already setting up absurd expectations ($100 B in revenues? Give me a break) ...



    That number, $100 billion, was the total yearly HDTV market...no one was suggesting that Apple would take over the entire market...
  • Reply 5 of 105
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by veblen View Post


    I'm fully entrenched in the Apple Ecosystem and I don't think I'd buy one. I have a 48" Sony that is only 3 years old. I've only bought two tv's in the last 12 years. Hooking a $99 appletv up to my tv works for me personally. I wonder how many folks are clamoring for this? Maybe they don't know they want it yet?



    People said the same thing about the iPhone and iPod.



    Furthermore, people said that they wouldn't buy an iPhone 4S but would wait for an iPhone 5. We can see how that's working out.





    The lesson here is that one shouldn't be talking about whether they'll buy a product or not when there's no real evidence that the product even exists, nor is there any evidence at all of features, pricing, etc.



    It is absurd to even speculate on whether you'd buy a nonexistent product that nothing is known about.
  • Reply 6 of 105
    kubekube Posts: 40member
    The current apple TV is really nice. I don't think many would pay 3x standard TV cost for Apple's turn-key approach. Its not clear to me why expanding the current apple TV and having it plug into a 'dumb' screen isn't a better way to go. The value of putting Apple TV into the display is pretty small, inflexible and expensive.
  • Reply 7 of 105
    paxmanpaxman Posts: 4,550member
    Quote:
    Originally Posted by tdws View Post


    If you have to accept the Apple ecosystem and buy content from them, this will be a non-starter. We are not veals in cages.



    This just might be where you are wrong... willing ones at that...
  • Reply 8 of 105
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Bageljoey View Post


    That number, $100 billion, was the total yearly HDTV market...no one was suggesting that Apple would take over the entire market...



    Other than AI which says that it's a $100 B opportunity for Apple.



    That aside, the number is irrelevant - you've missed the entire point of my post.



    We have a non-product and no evidence of whether it even exists, much less price, features, availability, etc and we already have analysts projecting that Apple will play a major role in the market. That builds up ridiculous, unrealistic expectations that Apple couldn't possible meet - which means more 'Apple fails to meet targets' headlines in the future.
  • Reply 9 of 105
    i am buying two of these Apple Televisions as soon as they come out.



    i'm psyched!!!!
  • Reply 10 of 105
    pendergastpendergast Posts: 1,358member
    Why do analysts insist on being dumb?



    This makes FAR more sense as an updated AppleTV set top box. You could duplicate the functionality quite easily, and it would speed adoption.



    Right now, the AppleTV still feels like a beta. AirPlay mirroring isn't quite fully baked; it's like 95% of the way there, and once it gets to 100%, it will be a game changer for games.
  • Reply 11 of 105
    paxmanpaxman Posts: 4,550member
    Quote:
    Originally Posted by AppleInsider View Post


    He sees Apple's so-called "smart TV" carrying a price as high as two to three times greater than competing LCD TVs. But he thinks Apple will be able to justify that price, and find success with consumers, with the company's brand, its "unmatched aesthetics, expansive digital ecosystem and overall quality."



    This makes sense on paper only.... people shop piecemeal. The cost of all their TV accessories my be much higher than their tv set but bundle it all together and they won't pay
  • Reply 12 of 105
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by kube View Post


    The current apple TV is really nice. I don't think many would pay 3x standard TV cost for Apple's turn-key approach. Its not clear to me why expanding the current apple TV and having it plug into a 'dumb' screen isn't a better way to go. The value of putting Apple TV into the display is pretty small, inflexible and expensive.



    I'm inclined to agree with you. An upgraded Apple TV with Blu-Ray, Ethernet, Airport, HDMI, and cable tuner would do nearly as much - but the initial audience would be much greater (no need to wait until someone wants to replace their TV). It would also allow Apple to leverage their experience and would undoubtedly provide greater margins. Simplicity wouldn't be harmed much - plug HDMI into your TV and set the TV to HDMI input and everything else could be managed from the Apple TV.



    But I have no idea what Apple's plans are. Maybe they've got something great up their sleeve. Maybe they don't. And, frankly, I don't really care. Wake me up when there's a real product.
  • Reply 13 of 105
    tjwaltjwal Posts: 404member
    I like my iphone and ipad but am not that impressed with the ATV. What it does it does well but unless you only want the content on Apples menu it is pretty limited. For a $100 gadget it's OK but I certainly wouldn't buy a TV with the same limitations.
  • Reply 14 of 105
    hmmhmm Posts: 3,405member
    Quote:
    Originally Posted by Bageljoey View Post


    That number, $100 billion, was the total yearly HDTV market...no one was suggesting that Apple would take over the entire market...



    You're correct but the author trolled us with the headline.
  • Reply 15 of 105
    pendergastpendergast Posts: 1,358member
    Quote:
    Originally Posted by kube View Post


    The current apple TV is really nice. I don't think many would pay 3x standard TV cost for Apple's turn-key approach. Its not clear to me why expanding the current apple TV and having it plug into a 'dumb' screen isn't a better way to go. The value of putting Apple TV into the display is pretty small, inflexible and expensive.



    I agree in principle; a set top box makes for easier adoption, and functionality described can be duplicated.



    The AppleTV really needs an update; it still feels like a beta that's "almost there".



    The only reason I see the benefit of an actual AppleTV integrated into a display is that Apple would control all interfaces; right now, you have a remote for the TV, you have to select the input from a clunky menu, etc.



    It would be huge if Apple integrated everything, so you have one simple remote, easy menus, etc.
  • Reply 16 of 105
    Quote:
    Originally Posted by veblen View Post


    I'm fully entrenched in the Apple Ecosystem and I don't think I'd buy one. I have a 48" Sony that is only 3 years old. I've only bought two tv's in the last 12 years. Hooking a $99 appletv up to my tv works for me personally. I wonder how many folks are clamoring for this? Maybe they don't know they want it yet?



    Possibly the thing you are not thinking of is the fact that there are people out there *without* HDTV's in their home at the moment.



    Just as most smartphone owners didn't see the value of the iPhone right away because they already had a device that filled what they thought were their needs, anyone who already has a big screen TV and all the various boxes and content hookups can't see any need to replace it.



    There are people out there who don't have an HDTV yet and at least some of them are not buying because they don't understand what it is they need to get or find the whole field complicated and off-putting. Apple will make an HDTV with built in content and make it so simple that your grandmother will buy it.



    What if they either bought Netflix or subsidised it on the TV for instance? Then any fool can buy a TV, plug it in and it already has every old movie and TV show on it you ever heard of without buying another thing. I think that would be immensely popular. Big upfront price perhaps, but once you bought it, no monthly cable bill at all.



    Most of the people I know with HDTV's pay something like 30 or 40 a month for Internet and then a further 69-90 for cable or TV packages. How nice would it be to just pay for the Internet hookup? This is just another step on the road to turning Cable companies, cell phone providers, and telecommunications outfits into the big dumb pipes they should be.
  • Reply 17 of 105
    No one said the TV would be limited to only working within Apple's Ecosystem.. after all, cable and public channels will need to be an option as well otherwise it really would be a non-starter... like selling hydrogen powered cars with no Hydrogen refill stations...



    chicken and the egg yolk
  • Reply 18 of 105
    Awesome. Apple can reinvent the 400lb trinitron era with a massive metal and glass tv set that has unparalleled glare.



    Seriously though. if it turns out to be a jumbo imac lite, can you imagine how much that som b would weigh? like stupid heavy. I'll take my plastic glare free tv over anything metal and glass. That's just asking for trouble.
  • Reply 19 of 105
    bageljoeybageljoey Posts: 1,728member
    Quote:
    Originally Posted by veblen View Post


    I'm fully entrenched in the Apple Ecosystem and I don't think I'd buy one. I have a 48" Sony that is only 3 years old. I've only bought two tv's in the last 12 years. Hooking a $99 appletv up to my tv works for me personally. I wonder how many folks are clamoring for this? Maybe they don't know they want it yet?



    You rase a valid question. I like the idea of a tv with Siri interface elements: "TV, go to the Eagles game" or "TV, tape Breaking Bad tonight" or any of a dozen commands that force you to fumble for the remote and then hunt and peck through annoying menus...

    BUT, if Apple can make that happen with a $100 add on box, why would people pay an extra thousand or two?



    Also, Apple has made a killing on consumer items that we replace or upgrade every year or three. For most people, TVs are on an entirely different upgrade schedule. I would think long and hard before buying an Apple HDTV if I felt I was going to feel left out if I couldn't upgrade in three years!
  • Reply 20 of 105
    Quote:
    Originally Posted by alienzed View Post


    No one said the TV would be limited to only working within Apple's Ecosystem.. after all, cable and public channels will need to be an option as well otherwise it really would be a non-starter... like selling hydrogen powered cars with no Hydrogen refill stations...



    chicken and the egg yolk



    yea, just like the apple tv and ipad and iphone play so nicely with other products... not.



    if apple builds a tv, you can expect it to shun some existing tech that everything else in the world uses (like ir or bt radio remotes) in a way that pushes some agenda they have (sony anyone?) like airplay.
Sign In or Register to comment.