Apple's iTV may extend "beyond streaming video"
Apple Computer's forthcoming iTV set-top box may include features beyond streaming content and could have an impact on video similar to what the iPod has done for music, Bear Stearns analyst Andy Neff told clients in a research note Wednesday.
Neff said he recently emerged from a meeting with Apple Chief Financial Officer Peter Oppenheimer and Vice President of iPod Product Marketing Greg Joswiak feeling "optimistic about the company's "continued innovation and twin drivers," referring to the company's competitively priced Intel Macs and compelling new iPods.
"Ultimately, Apple's goal is to create a product that customers would want (as opposed to creating new technology merely for the sake of technology), while focusing on areas where it can differentiate," he wrote. "Apple noted that it has a number of products currently in development that are likely to be introduced over several years."
Although Apple would not disclose additional specifications of iTV, Neff said the company highlighted that the device fits within its vision of simplifying consumers' use of content.
"Though details remain sketchy, Apple emphasized [the] focus of iTV [is] to improve user experience by leveraging its software expertise and implied that there may be features beyond the mere streaming of video content," the analyst wrote.
Apple has already acknowledged that the device will also be capable of streaming photos, music and podcasts. But during the meeting it also hinted at additional features such as an "internal hard disk drive for storage" and "advanced user interface software."
In his note to clients, Neff also said that Cupertino, Calif.-based company has now expanded its Mac presence at Best Buy to 60 retail stores and is "evaluating further opportunities for expansion."
The analyst maintained his current estimates of $0.78 in earnings per share on revenues of $6.42 billion for the December quarter, but increased his price target on Apple shares from $94 to $100 through December of 2007.
"We are maintaining out Outperform rating given numerous growth opportunities ahead, favorable consumer seasonality, and potential new product introductions which we reflect in our valuation," he wrote.
Neff said he recently emerged from a meeting with Apple Chief Financial Officer Peter Oppenheimer and Vice President of iPod Product Marketing Greg Joswiak feeling "optimistic about the company's "continued innovation and twin drivers," referring to the company's competitively priced Intel Macs and compelling new iPods.
"Ultimately, Apple's goal is to create a product that customers would want (as opposed to creating new technology merely for the sake of technology), while focusing on areas where it can differentiate," he wrote. "Apple noted that it has a number of products currently in development that are likely to be introduced over several years."
Although Apple would not disclose additional specifications of iTV, Neff said the company highlighted that the device fits within its vision of simplifying consumers' use of content.
"Though details remain sketchy, Apple emphasized [the] focus of iTV [is] to improve user experience by leveraging its software expertise and implied that there may be features beyond the mere streaming of video content," the analyst wrote.
Apple has already acknowledged that the device will also be capable of streaming photos, music and podcasts. But during the meeting it also hinted at additional features such as an "internal hard disk drive for storage" and "advanced user interface software."
In his note to clients, Neff also said that Cupertino, Calif.-based company has now expanded its Mac presence at Best Buy to 60 retail stores and is "evaluating further opportunities for expansion."
The analyst maintained his current estimates of $0.78 in earnings per share on revenues of $6.42 billion for the December quarter, but increased his price target on Apple shares from $94 to $100 through December of 2007.
"We are maintaining out Outperform rating given numerous growth opportunities ahead, favorable consumer seasonality, and potential new product introductions which we reflect in our valuation," he wrote.
Comments
I can just smell Apple TV in there.
"..but increased his 12-month price target on Apple shares from $94 to $100."
Does he mean the 12 months ending with the March quarter? If he does, and Apple releases iTV, iPhone and Leopard by then - then he may be $20 under (at least).
"Apple noted that it has a number of products currently in development that are likely to be introduced over several years."
I can just smell Apple TV in there.
"..but increased his 12-month price target on Apple shares from $94 to $100."
Does he mean the 12 months ending with the March quarter? If he does, and Apple releases iTV, iPhone and Leopard by then - then he may be $20 under (at least).
It's really through next Dec. I've updated the article. 13 months.
Vista! and um, zune.
Apple is Doomed?
Hopefully, you will be able to use the internet through a browser and iTunes without a separate computer.
I'd love to see some DVR capabilities, since I'm sure my DVR/SatBox combo is likely to die in the next year, but that probably doesn't fit with Apple's strategy. A boy can dream.
Yah, I would keep dreaming, I'd like it too, but it completely goes against the whole idea of purchasing and downloading from iTunes.
On the HD side, it would be interesting if you could also use the HD as a back up for some of your files on your Mac. I'll be looking for this, as well as HD options when ordering.
Overall I think Apple is getting ready to surprise us with a few more enhancements to iTV, putting a lot of pressure on a lot of would-be competitors.
I'd love to see some DVR capabilities
Not gonna happen. Apple could leave a backdoor open for DVR add on however.
Boo on itv using 2.5" drives
You might even be optimistic in that.
It would more likely use 1.8" drives.
I can easily envision a system in which the iTV is the user interface control and from it is strung (via firewire and/or LAN) devices like DVRs, tuners, DVD (SD, HD, BD) players, and other entertainment devices. The iTV provides the connection to the TV and possibly amp (or maybe an iTV amp module). All the devices attached to the iTV provide user interface specs to the iTV that manages the display of that UI. When you do all this you get a single simple to use interface to every component in the entertainment center, a single remote for all of that, and a system that is easily extensible to new features and functions. So, image if you wanted to have a triple tuner DVR, just plug in a 3 tuner modules, the DVR module automatically sees it and has access to it's channels. The iTV would also see the tuner and DVR and provide easy access to both. Want a BD-DVD, plug in a BD-DVD module. It would could even lower the cost of all these devices because only 1 has to provide a user interface and remote control interfaces, etc. Most CE interfaces are horrible, so having somebody like Apple do the actual interface would be a blessing. It would seem like Apple could own the living room by finally providing a simple way for mere humans to build a decent entertainment system (and to use that system).
I like the idea a lot. Apple themselves could create the components or third parties, but the interface would still be Apple. Just connect power and a single firewire or USB cable, iTV recognizes it and voila. Being a software driven A/V system, I imagine many possibilities on that end as well for the system itself and perhaps third-party enhancements such as DSPs, EQs, customizations, etc...
Another nice feature would be something like ARD. I'd love to be able to have my computer in my office and access the desktop (not just documents) in the living room. I can imagine the simplicity of selecting 'Control Network Computer' and a choosing my computer from the list of computers with ARD active. Perhaps mouse control could be achieved through the arrows on the remote or a (BT) keyboard connected to the iTV.
Its logical to think Apple will open iTV for a third party industry to develop around it the same way it did for the iPod.
"Though details remain sketchy, Apple emphasized [the] focus of iTV [is] to improve user experience by leveraging its software expertise and implied that there may be features beyond the mere streaming of video content," the analyst wrote.
It will be a high end game console too. Take that I.B.M.!
Airport Extreme card currently in your Mac will work on an "N" network but it will be slower and use less bandwidth.
When the "N" specification is formally introduced I would suspect Apple will provide new Airport cards for older Macs.
Will the iTV require a "N" wireless card? If so can current Mac's with AirPort Extreme cards upgrade to a "N" wireless card?
I doubt it will reqire an 802.11n card to stream music, but maybe to stream video...