Rumors have claimed for months that Apple is about to release its own high definition TV, but Barclays analyst Ben Reitzes thinks those reports are wrong. Instead, he thinks Apple is working on a remote control system that will drive more than just your TV, and it'll be iPad-based.
Apple: All your TVs are belong to us!
"One of the best ways to increase the iOS device total addressable market is by expanding use cases so that every home could use an iOS device as a TV remote," Mr. Reitzes said. The iPad is the logic choice for this new remote control system because Apple can "make this product better through software – and allow it to control more tasks in your life."
Taking the remote idea further, he thinks Apple could eventually expand its remote control system to control other items such as light schedules, thermostats, and garage doors.
A smaller iPad, like the rumored 7.85-inch mini iPad, fits perfectly with Mr. Reitzes' remote control scenario, according to AppleInsider. We believe the 7-inch screen on iPad mini could be used for traditional content consumption such as reading books or watching movies, but Apple may have bigger plans for this device over time."
While a remote control system may not sound as exciting as a big screen Apple television, it would be easier to manage in Apple's retail stores since it would likely be a software add-on for the iPad since the multimedia tablet is already there -- and is substantially smaller than a TV.
He isn't, however, discounting the idea that Apple is working on its own television. That's still coming at some point, but not until Apple can finish working out content deals.
"We believe the big secret about Apple's TV strategy is not the TV itself -- it's about selling the remotes," he said.
Mr. Reitzes is maintaining his "Overweight" rating and US$810 target price for Apple's stock. Apple is currently trading at $643.23, up 7.38 (1.16%).