Analyst: Apple Unlikely to Launch Television Set in 2012


Investment bank J.P. Morgan has disregarded recent speculation regarding Apple launching a television set later this year.

It has been widely speculated that Apple will launch a full-fledged television set later this year.

According to J.P. Morgan analyst Mark Moskowitz, Apple isn’t ready to release a television this year due to multiple factors. He said on Thursday in a note obtained by AppleInsider that research conducted by the firm “does not indicate any looming TV-related product launch.”

Further, he believes that the current economic situation of the TV industry is not suitable for Apple to release such a television set.

“We are not sure that the Apple premium could prevail in the TV market, unless there is a radical change of the user interface, integration of the TV programming and data content, and use of gesture or voice control.”

Though the analyst is skeptical about an upcoming HDTV from Apple, he noted that the company has the potential to “radically alter the TV landscape” if the rumor turns out to be accurate. Moskowitz believes that Apple would take a progressed, more evolutionary step into the home entertainment market.

Moskowitz believes that Apple may take a slower, more evolutionary approach to break into the home entertainment market. J.P. Morgan believes that Apple “has the ability to deliver a differentiated home entertainment solution” rather than separate “game-changing content-related deals”.

Moskowitz also believes that “tight integration of hardware and software, industrial design, and ease of use” are the key to Apple’s success in the living room. Those factors would be more prominent than offering exclusive content to potential customers.

“Enhanced-content offerings could augment Apple’s TV solution but are not a necessity for Apple to be successful in the living room, in our view.”

He expects Apple to progressively expand its current Apple TV into “more of a set top box module,” with future iterations and updates.

According to Moskowitz, the television set could include universal remote capabilities through gestures or possibly Siri, DVR capability, advanced set top box and game console options.

“We believe Apple can design a smarter set top box to manage all components behind the end user’s TV experience, as well as eliminate the oft-cumbersome user interface provided by the cable and satellite operators,” Moskowitz wrote.

He does note that Apple’s preference for double-digit operating margins could potentially cause a problem. “We think that Apple can differentiate a TV through the industrial design and picture quality,” he wrote.

According to the analyst, such a device could arrive in 2014 or 2013 at the earliest.

AppleInsider reports:

The analyst pointed to patent filings detailing Apple’s efforts to apply in-plane switching technology to larger screens as evidence that the company could offer an improved picture quality over existing television models. Apple’s scale and display investments could also enable it to provide “‘Retina Display’ quality in a large flat-screen format,” according to Moskowitz. Finally, Apple’s unparalleled industrial design techniques would give it another advantage in building a successful television.

J.P. Morgan isn’t the only firm that has voiced its opinion. Jefferies analyst Peter Misek stated his thoughts last month in contrast to Moskowitz’s, claiming that Apple will release a television set at the end of this year.

Just two weeks ago, Reuters reported that Apple was in talks for streaming rights to EPIX movies for the rumored television set and Apple TV set-up box.