Will Apple enter the TV market? Pros & cons

I've been ignoring this topic for the last five years or so, but it seems that the rumour mill is reluctant to give up on the idea that Apple will launch a television.

The reason I've dismissed the suggestion for so long is mainly down to the many reasons I could think of as to why the company wouldn't make such a move. Now, however, I'm seeing an increasing number of factors to suggest that it might make sense. In light of this, I've listed my pros and cons below, the result of which brings me no closer to a solid conclusion but does lead me to believe that an Apple TV not just an updated Apple TV box (yes, it is confusing!) could be a slightly more realistic possibility than it once was. Penetrating specificty, I'm sure you'll agree. Perhaps there is an Apple TV in the wings, perhaps the idea was tossed around Sir Jony's lab and then discarded. Take a look at my arguments for and against and make up your own mind.  

PRO: Smart TVs aren't exactly flying off the shelves

And that's just the type of market Apple likes. There was hardly a tablet market before the iPad and MP3 players sucked before the iPod came along. The lack of a current audience isn't necessarily an issue. Apple can create one. Apple prefers to reinvent rather than introduce all-new products and the fledgling smart TV market could be its next target. 

CON: Is Apple ready to make a smart TV?

If even the major manufacturers like Samsung and LG can't get things going with their history in the field and longstanding component deals, the playing field is a worrying one. After this year's CES in Vegas we may know more about the hands they intend to play. 

PRO: Apple has some knowledge in the field

Apple already makes very big, very attractive displays that anyone would be happy to point a sofa at. They might not have the costs licked like the TV makers, but with nips and tucks in the right places and all the right features, it could still make a compelling product from a form and function point of view. At a time when Apple's focus is moving away from desktops and targetting the portable markets, shifting staff and resources from displays to televisions wouldn't be much of an issue either.  

CON: Apple hasn't yet managed to conquer the living room

The Apple TV box has been openly referred to by Apple as a hobby which most see as an admission of failure. When did you last hear Apple TV sales figures touted in a financial results conference call? That said, Apple is surely desperate to take the iTunes experience from iOS devices and put it onto your TV. A box just hasn't cut it so far. Perhaps the same system housed within a television would?

PRO: An Apple TV offers more to the consumer

It's not only the existing iTunes ecosystem of music, movies and TV shows that make an Apple TV an exciting prospect. An iOS-based television could also create a new arm of the App Store for big screen apps, a built-in camera could offer armchair-based FaceTime and a built-in microphone could introduce Siri to the living room. iCloud email and calendars as well as iTunes Match could be utilised too.  

CON: Would deals with networks be possible?

It's no secret that Steve Jobs always looked at a way to provide an in-house service first before working with a third-party. If rumours are to be believed he even wanted to circumvent telco partners and create Apple's own cellular network for the iPhone. That's a big task when it comes to television and especially sports. Apple does have good ties with major networks through the iTunes Store, however, and is rumoured to be bidding on Premiership soccer rights in the UK. Whether a subscription model would be the answer remains to be seen though and the many sports and entertainment networks already offering iOS apps for customers to consume their content digitally further muddies the water.

PRO: Apple has tested the water

Consumers now understand the idea of sending media to their television from their mobile devices using AirPlay. They also appreciate the benefit of time shifted and on demand entertainment through the iTunes Store and various entertainment apps. There's even the option to watch baseball on the current Apple TV box if you have an MLB.TV subscription. The iPad experience on a big screen (bar the touch interface) is now not such an alien concept. Could this be enough to convince consumers that they don't need 200 channels when they can pick and choose from a large library of new and popular content whenever they want?

CON: Could Apple really make an affordable TV? 

Apple's current 27" LED Cinema Display costs £899. Granted, the screen does include Thunderbolt technology and is perhaps a little high on specs by comparison to a standard HD TV but, with 40" 1080p TVs available at around £500, can Apple introduce a model at a competitive price?

PRO: The infrastructure for streaming exists

While Apple's huge new data centre could be written off as providing the grunt for iCloud syncing, Siri and iTunes Match, the company has successfully streamed a number of its events live online without hiccups and with very high quality video. Streaming from iTunes was possible even before the new data centres which suggests that there's bandwidth to play with should a new streaming service be announced. 

CON: It's like the music industry all over again…

Should Apple manage to get some major networks on board and provide some big name TV shows as part of its package, not everyone will jump into bed so readily. While Apple did wonders for music sales, ultimately changing the face of it, it took a while for all of the labels to appreciate what the future held and realise that iTunes was, at worst, the lesser of two evils. Television networks now pose the problem, knowing full well that they're entering the age of the net stream yet are still clumsily fumbling around like a horny sixteen-year-old, trying to shift their content delivery from dishes and cable to the web on their own. 

PRO: Gaming is important to Apple

While it's only third-party developers that have so far tested the iPad's role as a game console and controller for your home television, Apple provided the framework by introducing AirPlay and mirroring. Dedicated Apple TV games or more iPad+TV games would certainly be a big selling point. 

CONclusion

Even if Apple did make a television, which is certainly within the realm of possibility, issues arise when it comes to content. A television alone will not be enough. Apple's first foray into the TV market will have to make a big enough splash and provide compelling reasons outside of design and exciting features in order to sway those looking at the offerings from existing manufacturers. Another consideration is 3D functionality, the cost of which is dropping rapidly but the format hasn't quite taken off in the way many expected. That said, in a market driven by buzzwords and catchphrases, not offering 3D, which an Apple TV almost certainly wouldn't, might also be a deciding factor for television shoppers comparing prices and features. Ultimately, if decent enough deals can be struck to provide quality content to Apple TV users on top of their iTunes library, an Apple TV could be an enticing option for the existing iOS user, Apple fanboy and diehard tech junkies. The price will also have to be right. Unlike a set-top box, the launch of an Apple TV would be too much of a risk for Apple to simply end up referring to it as a hobby. 

Comments

[Business Card Printing]

Well said! As a consumer though, what worries me the most is the price. I trust Apple. The price just scares me.