This article was published on June 21, 2011

Will Apple enter the TV business after all?


Will Apple enter the TV business after all?

Apple may be teaming up with a ‘major OEM’ manufacturer of televisions in order to get a product ready to launch later this year, claims Daily Tech. This new rumor, reported by 9to5Mac, is supported by a source that Daily Tech says is a ‘former Apple executive’.

The source says that Apple plans to enter the TV business later this year to “blow Netflix and all those other guys away” by packing an Apple TV and iTunes inside a TV that would be produced by another company but branded with the Apple name.

The new TV product would apparently be for sale in Apple stores this fall, potentially to coincide with the iPhone launch. There is some hedging going on in the article though, with indications from the source that Apple’s “high standards” could cause delays.

We are highly skeptical of these rumors as the TV business is an inherently low-margin, high volume business that is absolutely inundated with competitors. These include many individual OEMs that offer their own internet connected TV’s as well as companies that offer set top boxes of their own like Google. Apple has traditionally shied away from products that fit those categories, with the Apple TV being a notable exception.

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Even if the source is accurate in his (or her) statements, remember that this very well could be a product that Apple is testing internally, with no plans to release. There have doubtless been many different products tested in Apple’s labs that have never seen the light of day. If there wasn’t a working ‘Apple Television’ somewhere in the complex at 1 Infinite Loop, I would be very surprised. That doesn’t mean, however, that it will end up on shelves any time soon, if ever.

As with most rumors regarding upcoming Apple products, the wait-and-see approach is the only one that will produce real answers. Do you think that Apple will enter the TV market? If so, why would that be a good business move?

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