Apple to Enter the TV Business?
Wall Street analyst says the company will include iTunes in the set.
By Swanni

Washington, D.C. (February 9, 2009) -- Pioneer may be ready to exit the TV business, but one Wall Street analyst says Apple could be preparing to storm in the front door.

Gene Munster, the managing director and senior research analyst at Piper Jaffray, predicts that Apple will launch its own branded TV set in the next two years. The set, the analyst says, will likely include DVR features and built-in components for Apple TV and iTunes.

In March 2007, Apple launched the Apple TV device which allows viewers to send videos and music from the company's iTunes store to a widescreen TV.

But the Net TV product has been a disappointment although it has been heavily promoted by some tech journalists and Wall Street analysts. Two years after launch, Apple has yet to release sales figures for Apple TV and company executives have dubbed it a "hobby."

If Munster is correct, Apple could be looking for a way to eliminate the middleman by including iTunes videos and music directly in the television.

Apple would not be the first computer maker to enter the TV business. Dell and Gateway became TV manufacturers a few years ago, but both dropped out due to poor sales and other problems.

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It seems like it would make more sense for Apple to license an "Apple Inside" module that other TV manufacturers could include in their sets to give them Apple TV functionality like iTunes playback and perhaps DVR functions. The TV manufacturer would then add a little "AppleTV" logo to the outside of the unit and charge a bucket more money for the set.

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Two things Apple does very well:

- The appearence of their devices
- Marketting

(They do other things well too, but in 50 years we will look back on these last 10 years and those two will stand out in my mind)

I agree with Andy, they would be much better off, offering some sort of licensing and or module that gives those features to consumers.

Having iTunes built into my TV would be astronomical low on my list of features when shopping for my next TV, and wouldn't justify paying Apple Prices for a TV

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TV manufacturers up to this point are focused on picture quality (as they should be) but unfortunately very little has been done on the user experience / content side of things, and instead have left it up largely to cable and DSB providers, plus the few others who have entered into the TV content delivery business, including Apple.

Apple does generally make nice stuff, so it'll be interesting to see what they do. What they have up on Dell and Gateway is their content delivery, iTunes (both in terms of the store, and just the management of existing content in your library, regardless of source).

If they add in features for live linear channels (cable tuning, DVR functionality) then I think it'd be a very interesting product. They have YouTube, but what about adding Hulu? Netflix? Some people have hacked their Apple TVs to work with Boxee.

Mind you I don't care if this would be in a TV itself or a set-top box that's no bigger than what they have now. Either's better than my cable box.

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I'm interested in picture quality. If this TV includes iTunes but has average picture quality only the fanboys will buy it. Especially when a good HD television costs thousands of dollars.

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Apple has always had fantastic displays on their computers. They might not manufacture the glass, but they certainly do a nice job of tweaking someone else's product. They also know how to package their equipment. When you look at an Apple, it looks unique. If anyone can enter the television market this late it's Apple. That said, it will need to do more than just look nice. iTunes isn't the killer app either. There needs to be something that makes an Apple television special, just like the iPod and the iPhone. It needs to be innovative.

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