Analyst: Apple Moving into Big Screen TVs

| Apple Stock Watch

Apple’s next market to take over apparently will be big screen TVs, according to Piper Jaffray analyst Gene Munster. He expects the company is already working on plans to start shipping its own all-in-one TVs by the end of 2012 that offer built-in Internet connection support, according to Forbes.

“[Apple] will enter the TV market with a full focus, as an all-in-one Apple television could move the needle when connected TVs proliferate,” he said.

Munster: Apple to make TVs

Mr Munster is making his prediction based on reports that Apple has been paying now to secure a major supply of some unidentified part. Those mystery components, he reckons, are related to 50-inch television displays.

“Based on our meetings in Asia (not with component suppliers) in conjunction with recent media reports, we believe Apple is securing displays for future products,” Mr. Munster said. “Apple has started to emphasize display technology in recent months (iPhone 4, iMac 27-inch) and we expect this emphasis to continue with the second gen iPad, future iPhones and Macs, as well as a future Apple television.”

Aside from speculation that Apple is securing orders for 50-inch TV components, there isn’t much backing up the idea that the company is getting into the television market. That isn’t, however, stopping Mr. Munster from standing behind his prediction.

“Recent developments in Apple’s strategy, including the component deal we believe could secure up to 50″ LCD displays, bolster our confidence that the company remains serious about the connected living room,” he said.

Apple is currently trading at US$345.52, up 2.08 (0.61%).

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Comments

jfbiii

Doubt it.

MOSiX Man

This is just dumb. Apple is not going to dive into a market that 1) is already saturated with different offerings, 2) has two or three established leaders, and 3) isn’t the type of device that consumers are likely to replace every couple of years.

Another thing to consider: Apple’s monitors are well-known to be really overpriced for what most people need in a monitor. How well could they possibly fare if they released a 40” TV that was the same price as their 27” monitor.

Lastly, since Apple still hasn’t officially upgraded the AppleTV from ‘hobby’ status to ‘business’ status, how could they even consider selling TVs with built-in AppleTVs?

Bosco (Brad Hutchings)

What’s the point if nobody can see the logo? Unless it comes with an automated Mac OS X “drawer”-like mechanism that extends a physical panel out to the side that could display a lit logo while the television is in use.

brett_x

What?s the point if nobody can see the logo? Unless it comes with an automated Mac OS X ?drawer?-like mechanism that extends a physical panel out to the side that could display a lit logo while the television is in use.

My TV has a Toshiba logo that is LED lit. Of course, there is an option to turn it off, which would not be the way Apple would do it.

Bosco (Brad Hutchings)

My TV has a Toshiba logo that is LED lit. Of course, there is an option to turn it off, which would not be the way Apple would do it.

Too small. Doesn’t Apple have some sort of pico-projector patent? Maybe they will use it to project the logo onto the ceiling or the floor.

Nemo

Bosco:  We know that it has been a bad day for you with Verizon selling out of the iPhone 4 in just two hours on its first day at Verizon and with Verizon selling more iPhones in two hours than any other cell phone, including any Android cell phone, that it has sold on a first day launch.  So I am sure we are happy to let you vent on this forum some of that bile that has built up and distended your gut, unless you otherwise explode or burn a whole right through your neither regions. For what would we do without you?  So vent away and empty your liver.

Bosco (Brad Hutchings)

It was a joke Nemo. Edgier than normal because it launched off one of Munster’s silly predictions that never come true.

The Verizon Unicorn seems to have had a very good day. Congratulations! By July, Android phones will outsell iPhones by more than a 2:1 ratio anyway.

Substance

Munster’s really reaching here.  Besides not having a lot of speculation - let alone facts - to base his argument on, it doesn’t make any sense for Apple to enter the TV market.

The markets that Apple has jumped into - portable Mp3 players, cellular phones and tablet computers - were markets that had nothing but stale offerings that Apple could blow past with innovations aimed at consumers, not power users. 

The TV market has at least a dozen major players and is very price-conscious.  Most of all, I don’t see how Apple could innovate the TV that much beyond building an AppleTV into it.  Apple could accomplish that simply by reaching deals with TV makers to embed an AppleTV in their sets instead of taking on the risky practice of building their own TVs.  Taking a ‘dumb’ device and making it ‘smart’ is an option that exists with TVs that didn’t exist cell phones.

mrmwebmax

+

Bosco: First of all, my prediction is coming true. I knew that there would be a mad rush to snap up the iPhone on Verizon, and that’s exactly what happened. As for your July prediction? You DO realize what will happen just about then? The iPhone 5, no doubt on both AT&T and Verizon. So my prediction to you: Android will have no chance of having more than twice the market share of iPhone. It may have more, but only slightly more. Time will tell. But the Verizon unicorn—as you call it—has already come through, and in a mere two hours at that.

BurmaYank

I don?t see how Apple could innovate the TV that much beyond building an AppleTV into it.? Apple could accomplish that simply by reaching deals with TV makers to embed an AppleTV in their sets instead of taking on the risky practice of building their own TVs.? Taking a ?dumb? device and making it ?smart? is an option that exists with TVs that didn?t exist cell phones.

I bet it will actually be not so much a TV as a full computer monitor for all Mac OS and iOS devices with an enhanced built-in AppleTV interface to the internet plus an Elgato eyeTV-HD -like video interface, and a full-function dock for your laptop and iOS device.

jfbiii

After July and the iPhone 5, Verizons iOS/Android sales numbers (not installed) will look just like AT&Ts; numbers do today.

BurmaYank

After July and the iPhone 5, Verizons iOS/Android sales numbers (not installed) will look just like AT&Ts; numbers do today.

WOW!  What an amazing revelation about US Android phones’ actually poor relative success so far, and how unfavorable the relative trend-slopes actually are for US Android phones (i.e- the iOS & Android growth slopes are parallel, with iOS’a sales always double Android’s - and all this is without the impact of the skyrocketing Verizon iPhone yet).  A few observations on that page also caught my eye:

“-As of November, the ratio of iOS to Android users was more than 15 to 1 at AT&T.
-iOS at AT&T has twice the users as Android at Verizon…
-Since Verizon and AT&T have nearly the same number of subscribers, excluding RIM, which is common to both, AT&T has a far larger penetration of smartphones (16.5 million vs 7 million)...
-Other data from comScore shows that much of the gains for Android at Verizon have been at the cost of RIM, so Android has not been entirely additive.”

Thank you jfbiii, for posting that excellent find!

hughmass

I don’t know if this prediction is true, but I really, really hope it is. The first version of the iPod was an expensive toy, but I bought the 3’rd version and it added a lot to my life.
An Apple 42-50” LCD LED set, connected to my Comcast connection would enable me to have only one entertainment/computer system. Put a tray in back for docking an iPod, iPad, iPhone, LightPeak hard drive, Comcast box, MacBook, and a slideout tray for a keyboard and mouse, and I sure would be a customer, if I could afford it.
Make 27” of the screen dedicated for computer use, add in a million apps for fun/utility use, and life would be a little more fun.
Just saying I think it is a good idea. Sell a lot of Mac, iPads, etc.
Hugh

Terrin

I see Apple making this move eventually. It is a natural progression of where things are going. Imagine a 50 foot TV using Apple’s Retina Screen technology. It would look gorgeous. Further, if the TV has some advanced version of Apple TV built in making home networking even less messy, that’d be great as well.  I’d by one.

Further, Apple has great distribution channels with its retail stores. Others would buy as well.

alphaclay

One of the lady’s in the office came to me with her mini 4x8 inch pad ‘something or other’ this morning seeking help from me to “make it work” since she saw I had an iPad.  She was having multiple problems.  Couldn’t sign in to her g-mail account, couldn’t load pictures, she was distressed.  I’d never seen one of these units before.  After she helped me turn it on, I recognized it as an Android, or at least its operating system was.  The first thing I noted was the ‘touch screen’ was more of a ‘firm tap’ or ‘bang on it until works’ operation.  Multiple small screen options were confusing.  We, working together cause I couldn’t figure out anything, never did get anywhere near what she was trying to accomplish. Now she’s a ‘bright’ lady ... but she’s had it for a week and isn’t impressed with it.  She finally went back to office saying she was going to see if she could take it back and get an iPad ‘for a little extra money.’

Now, I’m sure that it is a reasonably good unit or it wouldn’t be selling given all the press it gets.  But I can tell you, after using an iPad, there’s no way I’d never, EVER, consider buying one of these units.  Even my wife who hates all electronics except her 27” iMac and her iPhone 3GS, worked my iPad from Day 1.  She is generally very quiet but turns into a screaming “YES-S-S” and “High 5” person with Pinball HD, Glow Hockey, and Real Solitaire.  She is now waiting for the day the iPad2 comes out so she can have my old iPad.  And I’m waiting also.

alphaclay

... And when Apple makes a 50” inch screen, I’m sure I (and my wife) will be get one.  Maybe “Toshiba [has a] logo that is LED lit. Of course, there is an option to turn it off,”  or maybe its made that way so you can “hide it.”  Just joking!!  They make a good ‘big screen’, but their computer ??, can you imagine a 50” Toshiba screen with a rolling hillside.  Nauseating.  But that’s just my opinion.

Ross Edwards

@alphaclay, well, the whole point is that you turn off TV logo illumination when you want a dark room to watch a movie.  This isn’t new; old Pioneer Elite laserdisc players used to have it to turn off their displays for “cinema mode.”  Right now Apple’s notebooks don’t give you an option to turn off the glowing fruit on back.  I’m sure they’d do it for the TV, though.  I’m not sure I buy the notion that Apple is interested in making a television set, but that’s another story.

@bosco, you’re bringing this on yourself, dude.  I’ve consistently defended your right to be abrasive in your comments, because I think the positives of a vigorous and pointed discussion outweigh most of the negatives of wusses getting their feelings hurt, but there has to be intellectual honesty or else you’re just being a troll.  Just admit the Verizon iPhone has been, so far, an immense hit beyond anyone’s expectations.  Just make your peace with it.  It ain’t your thing, we know, but it’s reality.  We’ll move on from there, and certainly Android has every chance to compete in the marketplace moving forward because it does have an established base now.

@jfbiii, thank you for the link, as others have said, it’s great.  Doesn’t surprise me much that the main smartphone migration on VZ has been from blackberry to android.  VZ has a huge, huge stable of customers who just want basic dumbphones because those phones meet their needs.  Those numbers don’t dazzle much, but I’m sure any other carrier would love to have that revenue stream at that size, regardless of it being a slightly smaller margin than a smartphone client.

Longtime Mac

What the doubters fail to realize if this is true, is that Apple will re-invent the TV.

Yes, it would be foolish for them to compete with our current understanding of a TV monitor. But Apple would elevate it to the next generation of TV monitors. And once again, all the imitators will follow and begin competing with Apple. How many times do we need to see this to understand?

alphaclay

Ross Edwards ::: I Did Not Know You Could Not Turn Off The Apple Logo.  Seems like I’d have noted that since I have owned Apples & Macs since 1983.  I guess it was my personal joke that Toshiba was hiding their logo out of embarrassment.  And I hate sitting in a completely darken room watching television.  There’s this intensely bright 5-10% of my visual field that produces images around the screen ... sorta like continuing to see a photo flash for a bit.  But that’s me, not you.

Be sure to read the “Longtime Mac” comment.  Apple doesn’t just make a better product, it creates a new species each time it bring out a new product.  Granted, it might walk a fine line with someone else’s idea (all those lawsuits).  Would someone please remind me who has created more innovative products than Apple in the last, say, 5 years.  I’d really like to know.

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