Bloomberg’s Mark Gurman has revived discussions about an Apple television, though he presents it with a high degree of uncertainty.
[The company] might reconsider the project of producing an Apple-branded TV set, something currently under evaluation.
Those who have been reading for a while may remember that speculation about this concept has been in circulation since at least 2011 …
At the time, Piper Jaffray analyst Gene Munster strongly believed that an Apple television was not just in the pipeline but imminent.
We’ve been monitoring Munster’s predictions that Apple would release a television either “this year” or “within a year” since early 2011, with updates later that year, in early 2012, late 2012, early 2013, and even towards the end of 2014—making more conservative claims. I’ve likely missed a few iterations.
He eventually changed his stance in 2015.
Even in those early days, the rationale was shaky, although Munster and a few others were so adamant about its arrival that it raised questions about what Apple could potentially contribute to the market.
Large-screen, high-spec TVs are a commodity these days
While it was challenging to find a solid argument back then, it’s even more difficult today to comprehend how this could be viable. TVs are predominantly commodities today.
For example, here are the top-selling TV sets at Best Buy currently …
The best-seller is the 65-inch Sony Bravia 3 LED 4K, featuring HDR, Dolby Vision, Dolby Atmos, 4K upscaling from HD content, and advanced image-processing technologies for both movies and games, all priced at $650.
Next is a 75-inch Samsung model, also boasting 4K resolution, HDR, upscaling, motion-processing, color-processing, and more, priced at $550.
In third place is a 50-inch Samsung with similar features priced at $250.
The presence of budget options has never stopped Apple from entering a market, but in other categories where the company competes, there’s usually a significant differentiation in specifications between Apple products and entry-level alternatives. In the TV market, impressive specs and substantial sizes are available for prices that likely wouldn’t align with Apple’s typical business model.
It’s not impossible for Apple; but hard to see a reason
Of course, there are still high-end models available. For instance, Samsung offers a custom-order 114-inch microLED model priced at a staggering $150,000, alongside a standard $20,000 85-inch version.
However, the reality is that almost everyone interested in a high-spec TV can find options for under a thousand dollars, and manufacturers are often only making a small profit on many models. The television market operates on very thin margins.
Though it wouldn’t be impossible for Apple to introduce a premium-priced TV encapsulated in elegant design at its customary 37%-ish profit margin, it would likely sell these high-end units in even lesser quantities than the Vision Pro.
The Vision Pro’s appeal to Apple stems not from immediate profitability but rather from establishing a foothold in an emerging market with considerable future potential. This growth could materialize in three, five, or even ten years—it’s unclear. Yet, it’s not unreasonable for Apple to believe this sector will eventually take off, allowing the company to secure an early position.
Conversely, an Apple television lacks that promise of significant long-term growth.
I’m betting this will never happen
Admittedly, I’m the last person to provide input on this topic—I haven’t owned a television in over two decades. However, if I were to purchase one, I’d seek out a device that resembled a simple display (or more realistically, a smart TV whose apps I wouldn’t utilize) coupled with an Apple TV box.
This has been Apple’s strategy for years: purchase any television that you prefer, and spend $129 or $149 to convert it into an Apple-centric device. When the integrated technology becomes outdated, there’s no need to buy a new screen; simply replace the inexpensive Apple box.
I don’t anticipate this model changing—what are your thoughts? Please participate in our poll and share your opinions in the comments.
Photo: Samsung
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