Apple won't sell TVs alongside iTV set-top box - analyst

Posted:
in Future Apple Hardware edited January 2014
While Apple Computer is expected incorporate some additional flat screen displays into its retail store layouts in order to promote its iTV set-top media box beginning early next year, the company is not developing a line of its own TVs to coincide with the product, according to one Wall Street analyst.



In a report released on Thursday, PiperJaffray analyst Gene Munster said the Cupertino, Calif.-based Mac maker plans to leverage its retail stores as 'launch pads' for the new iTV, using a few LCD TVs to demonstrate the features of the device. However, the analyst told clients he does not believe Apple will "sell 3rd party televisions, nor will the company develop Apple-branded TVs to sell in the retail stores."



Munster estimates that about 60 percent of the square footage at the company's stores represents Macs with the remaining 40 percent geared towards iPod products. "The iTV will draw slightly from each, but over the long haul we believe Apple will continue the focus on Macs at the stores," he said.



Because iTV does not fit neatly into the Apple's Mac or the iPod+iTunes sales segment, Munster sees the device as the start of third product category called "the digital living room," which he believes will bridge the gap between the company's two main growth engines.



"The iTV lets users access iTunes content stored on a computer and view it on a television. Whereas the iPod gives portable access to the same content, the iTV brings the content into the digital living room," the analyst told clients. "Therefore, the iTV provides further integration between the Mac and iPod sales segments, by adding a 3rd significant growth driver to the mix."



Meanwhile, Munster sees a release of an iPhone in the next 6 months adding a fourth product sales driver, as part of Apple's continued goal of creating new ways in which media content stored on a computer is accessible to users "anywhere at any time."



Rumors of an Apple-branded plasma TV line ran rife in the days and weeks leading up to this January's Macworld Expo in San Francisco and were recently revitalized in a Mac-based Internet radio broadcast. However, little if any evidence has ever surfaced to add credibility to the rumors.
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Comments

  • Reply 1 of 68
    programmerprogrammer Posts: 3,409member
    Talk about stating the obvious.
  • Reply 2 of 68
    Obvious to those with 2000+ comments on an Apple focused forum.

    But not so obvious to all the new investors who have recently become interested in AAPL.
  • Reply 3 of 68
    elronelron Posts: 126member
    Quote:
    Originally Posted by Johnny Mozzarella


    Obvious to those with 2000+ comments on an Apple focused forum.

    But not so obvious to all the new investors who have recently become interested in AAPL.



    I wouldn't go that far. Earlier this year Rolo had half the forum convinced that Apple was going to release a TV at MWSF.
  • Reply 4 of 68
    Where is Rolo?
  • Reply 5 of 68
    I don't see Apple selling a branded TV but they very easily could sell a brand name TV just like they sell brand name cameras...
  • Reply 6 of 68
    meelashmeelash Posts: 1,045member
    Quote:
    Originally Posted by AppleInsider


    However, little if any evidence has ever surfaced to add credibility to the rumors.



    As opposed to all the other rumors 8)
  • Reply 7 of 68
    mr. memr. me Posts: 3,219member
    Quote:
    Originally Posted by Johnny Mozzarella


    Obvious to those with 2000+ comments on an Apple focused forum.

    But not so obvious to all the new investors who have recently become interested in AAPL.



    The tenor and tone of the article is that the analyst assumed that Apple was considering getting into the TV set business. This makes only slightly more sense than assuming that Apple is considering getting into the freight business to deliver its computers and TV sets. Anyone who makes investments based on assumptions like this lost his/her money long ago.
  • Reply 8 of 68
    meelashmeelash Posts: 1,045member
    the "tenor" and "tone"?? Is this a Mozart piece or something



    -Sorry Mr. Me, Didn't mean to pick on you...
  • Reply 9 of 68
    I recently read an article bashing the Apple "fanboys", it said we/they were having a destructive effect on Apple's stock price... wish I had that link...
  • Reply 10 of 68
    gugygugy Posts: 794member
    Quote:
    Originally Posted by Bergermeister


    Where is Rolo?



    Rolo is gone forever!



    Seriously, I doubt Apple will have a brand TV. but I do believe they will have a larger than 42" monitor in the works that "could" be used as hi-def TV alongside iTV.
  • Reply 11 of 68
    irelandireland Posts: 17,686member
    Apple will sell an Apple branded TV, eventually!

    Apple sold a speaker to go with the iPod, a first for Apple. Apple makes speakers, and they also make LCD computers, if they combine the two and add a sprinkle of research here, a dash on money there, eye of design, a spiders leg and a monkeys foot etc. They'll make a TV either to go with the iTV, or they'll eventually sell a TV with iTV built-in, and then they will announce there global subscription TV service to replace cable, as the studios will team up with them to make that happen.



    I don't see them making a TV until al least Christmas 2007 though.
  • Reply 12 of 68
    eckingecking Posts: 1,588member
    I really doubt that apple will release tvs, unless they add a tuner to the cinema displays.



    An apple tv would make no sense, they wouldn't be competitive on price, they wouldn't be able to make enough product, they probably wouldn't be competitive on features.



    They can't offer anything no already offered by other tv manufacturers other than a silver apple logo.



    If anything they could strike up another deal with a company, I know samsung makes computers in Korea but I've never seen any here, so I guess the same the USA, if that's the case they could do iTV+Samsung or something, half of samsung's product range already looks like they're apple inspired.







    +







    I think that makes more sense than the sony setups they've been using in the past.
  • Reply 13 of 68
    mr. memr. me Posts: 3,219member
    Quote:
    Originally Posted by gugy


    ....



    Seriously, I doubt Apple will have a brand TV. but I do believe they will have a larger than 42" monitor in the works that "could" be used as hi-def TV alongside iTV.



    There was a rumor earlier this year about Apple's getting into the plasma screen TV business. [Was that Rolo?] At any rate, the problem with the rumor then is a bigger problem today. There is tremendous downward pressure on flat panel prices. The prices of LCD and plasma widescreen sets are dropping so quickly that a new set costs less than you owe on your old one.
  • Reply 14 of 68
    vineavinea Posts: 5,585member
    That's a good thing if your son just drew all over your screen in permanent ink that seems resistant to any solvents my chemist wife can bring home (well ones that won't melt the screen anyway).



    Vinea
  • Reply 15 of 68
    801801 Posts: 271member
    Apple keeps increasing the size of its monitors. Add iTV, and the fact that that some of us do not have Television in our homes, but watch only movies and internet television and bingo, you create the new television watcher.



    Try it, my friends. Kill your TV, and you too can have a kid heading to Franklin Olin college.
  • Reply 16 of 68
    vineavinea Posts: 5,585member
    With respect to tuners perhaps Apple's play is for IPTV as well as iTunes sales. AT&T has a very so-so IPTV pilot program but they SAY they are spending $4.6B to reach a desired 19M homes by 2008.



    Kinda a longshot for iTV though but its likely that you are going to be using a cable, FiOS or dish box anyway. iTV would live on another video port.



    Vinea
  • Reply 17 of 68
    melgrossmelgross Posts: 31,983member
    Quote:
    Originally Posted by elron


    I wouldn't go that far. Earlier this year Rolo had half the forum convinced that Apple was going to release a TV at MWSF.



    You don't really believe his predictions, do you?
  • Reply 18 of 68
    melgrossmelgross Posts: 31,983member
    Quote:
    Originally Posted by Apple2Mac


    I don't see Apple selling a branded TV but they very easily could sell a brand name TV just like they sell brand name cameras...



    I don't see any advantage to buying a third party Tv from an Apple store. That's a big ticket item that Apple won't discount properly.



    If it were an Apple Tv, it would be different.
  • Reply 19 of 68
    melgrossmelgross Posts: 31,983member
    Quote:
    Originally Posted by Mr. Me


    The tenor and tone of the article is that the analyst assumed that Apple was considering getting into the TV set business. This makes only slightly more sense than assuming that Apple is considering getting into the freight business to deliver its computers and TV sets. Anyone who makes investments based on assumptions like this lost his/her money long ago.



    Are you talking about the tone and tenor of THIS article? Because, if you are, you've got it backwards. He said just the opposite.



    If not this one, which article are you referring to?
  • Reply 20 of 68
    melgrossmelgross Posts: 31,983member
    Quote:
    Originally Posted by Ireland


    Apple will sell an Apple branded TV, eventually!

    Apple sold a speaker to go with the iPod, a first for Apple. Apple makes speakers, and they also make LCD computers, if they combine the two and add a sprinkle of research here, a dash on money there, eye of design, a spiders leg and a monkeys foot etc. They'll make a TV either to go with the iTV, or they'll eventually sell a TV with iTV built-in, and then they will announce there global subscription TV service to replace cable, as the studios will team up with them to make that happen.



    I don't see them making a TV until al least Christmas 2007 though.



    I agree. I certainly think it's a good possibility.



    People like to buy a "turnkey" system.



    In the home theater and high end audio industries, manufacturers are doing this because customers are demanding it.



    There could be quite a market for an all-in-one Apple system. From iPod, computer, iTv, to final viewing and listening.



    If Apple produces the correct product mix, it will work.
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