A famous quote from Steve Jobs sparked a long-standing intrigue about the potential for Apple to develop a television set. Although this product never materialized, the aspiration remains alive, especially with recent speculation from Mark Gurman suggesting that Apple is now ‘exploring’ the possibility of producing a TV. Here are five reasons why I firmly believe Apple should pursue creating its own television.
An Established Area of Expertise
While Apple has yet to produce a television, it possesses the necessary expertise and experience.
- Displays are a core competency for Apple, highlighted by this year’s M4 iPad Pro, which features ‘the world’s most advanced display’.
- Apple’s strengths in audio and sound quality are well-established, evident in products like AirPods and HomePods, as well as inbuilt speakers in devices like the iMac.
- Apple already has a television operating system in the form of tvOS; though not without flaws, the foundational elements are already present.
In essence, crafting an outstanding television wouldn’t pose a significant challenge for Apple. Moreover, their reputation in these fields would facilitate customer acceptance of a premium price.
Focusing on Privacy
Apple takes user privacy very seriously. Unfortunately, contemporary TVs are notoriously poor at protecting privacy.
Smart televisions often sell viewing data to third parties, who then bombard users with ads on the TV itself—through the home screen and screensavers, among others. This creates a frustrating user experience, and Apple could leverage its commitment to privacy to market a TV focused on user protection.
Conquering the Home Market
TVs often serve as the hub of smart homes. While not everyone owns smart speakers or connected light bulbs, almost every household has a television.
If Apple genuinely aims to dominate in home technology, introducing a television will be crucial.
Offering the Apple TV 4K alone is insufficient; many consumers view this as an unnecessary addition since most modern TVs come with built-in streaming capabilities.
For many, purchasing a TV along with an Apple TV 4K is not feasible. However, they might be inclined to buy an Apple TV if it were their next television upgrade, even if that ultimately costs them more.
Once an Apple television is in someone’s home, they are more likely to invest in other smart home products, like HomePods and HomePads.
Profit Margins and Service Revenue Potential
It’s likely that an Apple TV would carry relatively slim profit margins for the company.
So, what’s the business justification for manufacturing a television? Service revenue potential.
Consumers who own an Apple TV are more likely to subscribe to Apple’s suite of services. An extended trial period for Apple One could be a seamless inclusion with each TV purchase, allowing users to experience Apple TV+, Apple Arcade, Apple Fitness+, and Apple Music without added costs. Once the trial concludes, a significant number of users may choose to continue their subscriptions.
An even more lucrative opportunity lies in Apple’s potential revenue share from third-party applications and services on its platform. Similar to how it operates with the Apple TV 4K, Apple would profit from taking a percentage of subscription fees.
The Future with Apple Intelligence and HomePad
Significant overlap exists between the functionalities of the upcoming ‘HomePad’ device and what could be advantageous for a standalone television.
The forthcoming enhancements to Siri’s Apple Intelligence could greatly enhance the user experience. Envision a television that transforms into a voice-first computing platform—if executed effectively, it could revolutionize not only TV viewing but also smart home control and access to essential information through widgets.
Final Thoughts on Apple TV
The concept of Apple producing a dedicated television set remains largely aspirational. However, I believe it should be a reality. My hope is that Apple’s current evaluations lead to an actual product this time around.
While most iPhone users may hesitate to invest in a premium television when budget options exist, there is a sizable audience that would eagerly embrace it.
What are your thoughts? Should Apple venture into the television market? Share your opinion in the comments.
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