Apple To Make Actual TV Appliance, Says Analyst

Apple To Make Actual TV Appliance, Says Analyst
Image from Flickr by Tom Small
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3193414044 326d8678ee z Apple To Make Actual TV Appliance, Says Analyst
Image from Flickr by Tom Small

Piper Jaffray analyst Gene Munster believes that reported negotiations of Apple with different TV networks to provide slimmer TV bundles will lead to an actual Apple television set. Munster said he believes that launching a standalone television is the most logical path to take for the company.


Actual Apple TV Set

On March 16, The Wall Street Journal reported that Apple is already in negotiations with different TV content providers to produce a TV bundle with 25 different channels.

Also read: Apple To Offer TV Bundle With 25 Channels

“We believe content has been one of the hurdles to Apple selling an actual television. We expect this offering to lay the groundwork for an actual Apple television, potentially announced in 2016,” Munster said, as quoted by Smarter Analyst.

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Munster highlighted that the reported “slimmer bundle” would remove a “significant hurdle” to Apple launching a standalone television.

“While recent media reports question Apple’s interest in an actual television, we continue to believe it is the most logical next area of focus,” Munster highlighted.

Munster is also seeing significant potential revenue if Apple indeed launches an actual television set.

“We believe a television could add 5-10 percent to CY17 revenue. We believe the current overall TV market was about 220 million units in 2014 of which 60 percent was connected; thus if Apple sold 10 million units in CY17 (likely 5 percent of market) at a $1,750 ASP, it would add about 7 percent to CY17 revenue.”

Apple TV Entices Network Providers

The TV content providers said to be in talks with Apple may be enticed with the company’s huge mobile device user base. If they agreed to be included among the 25 channels in the bundle, there is a possibility that they will also be increasing their viewers via mobile devices.

“The time is right. Holding the screen in front of you is an experience that a new generation is growing up with,” BTG analyst Walter Piecyk told Reuters. He added that “operators, by not developing their own technology fast enough have really left the door open for Apple not only to provide a lower-cost solution that has greater functionality, but that’s easier to use when on the sofa looking at the 50-inch.”

Tim Cook Hints on Apple TV

In a 2014 interview on the Charlie Rose Show, Apple CEO Tim Cook may have hinted about Apple’s plan of changing users’ TV experience.

“Think about how much your life has changed, and all the things around you that have changed. And yet TV, when you go in your living room to watch the TV, or wherever it might be, it almost feels like you’re rewinding the clock and you’ve entered a time capsule and you’re going backwards. The interface is terrible. I mean, it’s awful!”