Apple's TV Journey: From Concept to Reality
Apple's Long-standing Interest in TV
Apple's interest in TV sets and television in general dates back at least 15 years. When Apple CEO Tim Cook mentioned that Apple considered TVs "an area of incredible interest," it solidified this interest in some ways. The subsequent introduction of the Apple TV 4K streaming box, followed by the TV app and Apple TV Plus, all contributed to a grand vision. This vision showcases Apple's efforts in the streaming content space. 1: Apple's foray into the TV realm has been a gradual but significant one. The development of these various products has shown the company's commitment to providing a seamless streaming experience. The Apple TV 4K streaming box laid the foundation, while the TV app replaced the Video and iTunes video library and store, making it easier for users to access their favorite content. Apple TV Plus, with its unique programming, introduced the world to Apple's vision for streaming. 2: This long history of work in the TV space indicates that Apple has been seriously considering the potential of TV. It's not just a passing fancy but a strategic move to expand its presence in the entertainment industry.The Possibility of an Apple TV Set
We find ourselves constantly drawn back to the topic of an Apple TV set due to a recent mention in Bloomberg's Power On newsletter. It suggests that building an "Apple" branded TV set is something the company is evaluating. While this may not seem like much, it has sparked renewed interest and speculation. 1: The market for TV sets is significant, with Statista estimating the worldwide revenue opportunity at nearly $100b. However, the growth rate is relatively low, with only less than 1% annual growth expected over the next five years. This could be due to the fact that people tend to hold onto their big TV sets for at least 5 years. Apple, on the other hand, thrives in markets that offer annuities like its services or have built-in upgrade cycles like its iPhones. TV sets alone do not provide these advantages. 2: So, the question remains: is an Apple TV set the right move for the company? It's a decision that requires careful consideration of the market dynamics and Apple's own goals.The iPad as a TV Alternative
Let's assume, for the sake of argument, that Apple is back in the TV hunt. The iPad may play a crucial role in this pursuit. Not only is it a perfect delivery system for Apple's own streaming service, but it also offers an in-home branding opportunity with a visible Apple logo on the chin base. 1: Going back to 2013, a survey showed that more than 50% of respondents were watching TV on an iPad. This highlights the popularity and potential of the iPad as a TV device. Currently, with the 13-inch iPad Pro featuring a fantastic Ultra Retina XDR Tandem OLED and clear four-speaker audio, it already serves as a capable TV. If the rumors are true, larger tandem OLED displays are on the way. 2: The iPad's versatility as a gaming platform and a smart home hub further adds to its appeal as a potential TV set. It can double as a giant workspace with support for key productivity apps, making it a multi-functional device.The Limitations of the iPad Pro as a TV
Although the iPad Pro 13 is selling well and is a great TV alternative, it does have its limitations. It lacks a remote (it's a touchscreen!), which can be a drawback for some users. Additionally, it lacks HDMI ports for attaching gaming consoles. 1: However, on an actual Apple TV in the form of a giant iPad, Apple could potentially avoid HDMI ports and embrace the cable-free streaming future. It could add a separate connections box for those who need it, which could even be wireless like LG M-series OLED TVs. This would keep the TV area clean and uncluttered. 2: Using the iPhone as the default remote is a convenient option, as we are already accustomed to using our iPhones for various tasks. And in case we can't find the remote, the touchscreen TV can come in handy. It would be beneficial to add the ability to turn off the touchscreen for a more immersive viewing experience.The Future of Apple's TV Set
In conclusion, Apple isn't far from building a TV set. It has been selling them in the form of iPads for 13 years. The iPad is already a TV, and it's time for it to reach its full potential. 1: With the advancements in technology and the growing demand for seamless entertainment experiences, an Apple TV set could be the next logical step. It would combine the best of Apple's hardware and software, providing a truly immersive viewing experience. 2: As Apple continues to innovate and expand its product offerings, the TV set could become a key part of its ecosystem. It has the potential to revolutionize the way we watch TV and bring a new level of convenience and entertainment to our lives.Uncertain Future of Apple's Television Venture
History of Apple Television Rumors
Back in 2011, Piper Jaffray analyst Gene Munster firmly believed that an Apple television was not only in the making but was about to be launched. Since then, we have been closely monitoring Munster's predictions that Apple would introduce a television set either "this year" or "within a year." These predictions were repeated in subsequent years, including 2012, 2013, and 2014. However, in 2015, he finally changed his mind. Although it seemed logical in the early days, with Munster and a few others being so confident, it became increasingly difficult to envision how this could be feasible today.
Large-screen, high-spec TVs have become common nowadays. Take a look at the best-selling TV sets at Best Buy. The number one model is the 65-inch Sony Bravia 3 LED 4K with HDR, Dolby Vision, Dolby Atmos, 4K upscaling from HD content, and various image-processing technologies for both movies and games. It costs $650. Next is a 75-inch Samsung model with 4K resolution, HDR, upscaling, motion-processing, and color-processing. It costs $550. The third in line is a 50-inch Samsung with similar specifications, priced at $250.
Challenges for Apple in the TV Market
While the presence of cheaper models has never deterred Apple from pursuing its goals in other product categories, the TV market is different. In other areas where the company operates, there are significant spec differences between Apple products and low-end ones. However, in TV, one can obtain truly impressive specs in large sizes for prices that seem unreasonable for Apple.
Sure, there are high-end models available. Samsung offers a 114-inch microLED model for a whopping $150,000 as a special order and a $20k 85-inch model that is more or less readily available. But the reality is that almost anyone who desires a high-spec TV can buy one for under a thousand dollars, and the brands selling them make only a small profit on most models. Televisions are a low-margin business.
Potential for Apple in the TV Market
It is not impossible for Apple to launch a high-priced TV with its usual 37%-ish margin. It could enter the territory of Bang & Olufsen. But it is likely that it would sell premium TVs in even smaller volumes than the Vision Pro. The Vision Pro makes sense for Apple not because it is generating immediate profits but because it gives the company a foothold in an emerging market with significant future growth potential. This potential may materialize in three years, five years, or even ten years - it is difficult to predict. However, it is not unreasonable for Apple to believe that it will take off at some point and that it is establishing a stake in anticipation of that time.
In contrast, an Apple television has no long-term potential for significant future growth. Admittedly, the author, who hasn't owned a television for over 20 years, might not be the best person to ask. But if they were to buy a TV, they would prefer a simple dumb screen (or a smart TV with apps they never use) along with an Apple TV box. This is the model that Apple has been following for years. Buy any TV and convert it into an Apple one by paying $129 or $149. When the smart features become outdated, instead of replacing the entire screen, just buy another cheap Apple box. The author doesn't expect this model to change. Please take our poll and share your thoughts in the comments.