Analyst: Apple Television Set Already In ‘Full Production’

Wall Street Journal has been reporting that Apple may be seeking a less radical path to expand in television than it has contemplated in the past. WSJ claims that according to ’people familiar with the matter’ Apple is negotiating with cable operators to use Apple TV device as a set-top box.

While Apple could easily embed the technology in a television set, the reports seemed to suggest that Apple has delayed the plans to launch its own television set.

However, MacRumors reports that Jeffries & Co. analyst Peter Misek in a research note released today, claims that those plans are still on and Apple’s television set is in full production. Misek also notes that Apple is looking to partner with AT&T and Verizon, so that it can leverage on their content deals.

We believe the iTV is in full production. Recent data out of Sharp, Hon Hai, and other specialty chemical and TV component suppliers support this. Also, JDSU noted that they have a new non-gaming customer for its gesture control modules. They indicated this is a new “living room” based customer. We believe Apple will leverage AT&T’s and Verizon’s content deals for the iTV. Additionally, the WSJ’s sources indicate Apple may also consider a set-top box version for the cable operators.

Misek believes that Apple will be able to sell 2 million television sets if it launches it in the fourth quarter, but he notes that Apple could delay the launch to the first quarter of Q1 to focus on the rumored iPad mini.

We expect either the iPad Mini to launch in CQ4 with the iTV either launching in CQ4 or CQ1.

Microsoft’s Surface tablets, the initial success of Google’s Nexus 7, and Amazon’s upcoming product launches could be affecting Apple’s launch schedule. These represent stiff competition vs. a likely lack of viable competition for the iTV over the next year. [...]

There is also the possibility that Apple chooses to launch both products before year end. The iTV would then be in time for the Christmas selling season, but that would mean Apple having three huge product launches in a short timeframe and leave little for CY13 outside of the typical iPhone and iPad refresh.

Ever since Steve Jobs biography revealed that he felt that he had finally cracked integrated Television sets, there has been chatter that Apple will release iOS based television sets as early as this year.

However, the rumor mill has been rather quite until this week. WSJ reported couple of days back that according to people familiar with the matter, Apple is negotiating with cable operators and content providers to use an Apple TV like device as a set-top that would offer cloud-based DVR, iPad-like user interface and social media features.

It is high time someone disrupts how we watch content on the television. We’ll happily part with our money if Apple does it. What about you?

[via MacRumors]

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  • SHALASHASKA

    I’ve been waiting for 2 years for an apple television , please do it

  • Alan

    Apple needs to stop coming out with new products. At this rate, I will have to get a second job just to be able to buy Apple products every year.

    Note to self: Check if treatment for Apple addiiction is cheaper.

  • My Two Cents

    I wonder what the price points will be for their TV’s. Also, when they enter the market with their TV, it is HIGHLY likely we will see yet another large drop in price on competitor TV’s in an effort to offset the many buyers that will pay more for a better Apple made TV. That benefits the consumers all around. Not to mention the bar being raised on the available TV technology! Cant wait!

  • solferico

    I can’t imagine how Apple could break the TV market. I don’t see the space there for ultra innovation, and TVs are not gatgets like phones or tablets:
    - In terms of design, there are out there very good designs (frameless, ultrathin, etc.)
    - In terms of “smart”, again in the market there are very good approaches, with apps , internet browsing, OTT content delivery, and so on (specially from Samsung)
    - Over the last point, the cheap AppleTV would convert any “modern” TV in an Apple iTV in that sense, without paying big bucks.
    - In terms of user interface, both voice and gesture control are already in the market, integrated in the TV (Samsung have some) or through set to boxes like kinnect. It also includes controlling your TV with your smartphone.
    - In terms of gaming, I don’t see Apple winning Sony, MS or Nintendo. During the average life of a TV, one can buy two-three gaming consoles and get next-gen features, instead of being stuck with the ones available when your TV was bought. Maybe the OnLive way… but they’re bankrupt, so it seems the model is not working.
    - A TV is a serious buy in terms of budget, you don’t change it every year like phones, so competence have better space to react and produce similar/better products between customers’ TV renewal.

    Anyway, maybe Apple have seen something I don’t even imagine, and will be a killer product. My guess is that it will be a somehow competitive TV set because having all previous features in a single device, plus the Apple pull, but not a killer one like iPhone or iPad were….

  • maxtor

    All the big TV makers like samsung, sony, panasonic, are already losing hundreds of millions of dollars every year already because they are trying to compete with cheaper walmart brand tvs. With Apples supply chains, if they can build something awesome for just a little more money then i dont think the other big guys can compete. There might not be one in every living room, but just the brand alone will sell a lot of tvs. Apple wouldn’t even enter the market unless they knew they could sell them for a large profit. . The other guys are selling them at a loss just to stay in the market

    • solferico

      My point is that there are already in the market great TVs (see http://www.samsung.com/us/video/tvs/UN46ES8000FXZA) that deliver all the features that would be great to include in a TV from phones: Gesture & voice control, face recognition, apps, full internet browsing, media streaming services, 3D, cool industrial design, etc…) This one, in 46”, is around 2.3K$ … not too expensive being cutting edge TV. And Samsung supply chains in terms of TV manufacturing are quite more mature and big in volume than Apple ones, taking into account that Samsung is the Nº1 TV vendor worldwide, manufactures many of the components by itself (and many for apple), while Apple has never visited this market, and the most expensive component in a TV set is the panel, where Apple has not established supply chains for such size panels (I mean they can’t aggregate volumes together with other apple products, since panels are different in technology and size compared to iphone & ipad)

      I agree that just with the brand punch apple will be able to sell some TVs, but here Apple faces the opposite scenario than it did with phones and tablets:there was nothing even similar out there when iphone and ipad appeared, but in the TV market, they are the ones arriving “late” while current products have already implemented everything that make apple products “special”.

      So, returning to my previous comment: I don’t expect apple to “break” the TV market, even if I agree they will be able to sell a somehow good amount of TVs.

      And, by the way, Apple market is not restricted to the US (maybe their first generation iTV will, like was the first iPhone). In Europe, there is no such low cost competence (there is in terms of price, but not volume since there is no WallMart equivalent continent-wide). Cant tell about China and so on…

      • http://www.facebook.com/THExREALxTACO Jeremy Taco Patterson

        I TRULY believe if Jobs felt he had “cracked” the TV, be it as a stand-alone set, set-top box, or some combo of those with iDevice interaction, then Apple WILL bring something truly innovative to the TV market. Look what his vision of the computer, laptop, tablet and phone brought: DRASTIC, game-changing innovation.

        The iMac was “late” to a market already saturated with shitty PC computers. They haven’t taken over… Yet… But the iMac and MacBook both gain market share annually, and will continue to do so as they continue to improve while PC remains the same stagnant, whored-out waste of silicon it has always been.

        I have a feeling Apple will partner with a TV manufacturer to build an Apple-branded TV that includes an Apple TV-esque content fetching system. Apple will make deals with all the major content providers (Networks, movie studios, and probably even music labels) to provide an all-”On-Demand” type experience. I HOPE the partner with DirecTV personally, as I already have their dish installed!