The Apple UltraHD TV that activist investor Carl Icahn forecasted to bring the company a revenue of &15 billion in 2016 an $37.5 billion in 2017, was quietly shelved more than a year ago. The company executives felt there is no compelling innovation for them to fight the already cutthroat television market.
Plans of Apple UltraHD TV was shelved more than a year ago
It has already been more than a year from the time Apple had discreetly shelved its plan of entering the television market, sources told The Wall Street Journal. According to people familiar with the matter, Apple executives find no compelling innovation to fight Samsung Electronics Co, which is now leading the market.
Apple is said to have considered creating an ultra-high-definition television set equipped with sensors that make video calls possible. The company considered installing cameras above the screen for a feature it dubbed as FaceTime for television. However, all the ideas brainstormed for the supposedly Apple UltraHD TV were not compelling enough for the company to take actions, the sources have said.
The only plan pursued by Apple in terms of television is the online TV service rumored to be the Apple TV bundle. The sources said Apple will introduce the new service during its developer’s conference in June. Apple is also planning to introduce a thinner Apple TV box model with a redesigned remote control and new software.
Carl Icahn raves about the Apple UltraHD TV
On May 18, billionaire investor Carl Icahn raved about the Apple share arriving at the value of $240 per share. In his open letter to Tim Cook, he said that the slated Apple UltraHD TV will contribute to the company’s fiscal year of 2016-2017.
“We expect in FY 2016 Apple will sell 55” and 65” ultra high definition television sets. We forecast revenues of $15 billion in FY 2016 and $37.5 billion in FY 2017 on 10 million and 25 million units respectively with average selling prices of $1,500,” Icahn wrote in his letter.
Icahn said that the market for television is at approximately $575 billion.
“We view television’s role in the living room as a strategically compelling bolt-on to the Apple ecosystem,” Icahn wrote.
He also predicts that Apple will launch a skinny bundle of pay-TV channels and an updated Apple TV microconsole. He went as far as saying that the Apple Watch could be used as a remote and that the 12.9 inches iPad would act as a “second screen” for the Apple UltraHD TV.
Also read: Apple and Disney Argue Over TV Bundle
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