Porter Bibb, Media Tech Capital Partners, explains why he doesn’t believe Apple is getting into the business of making television devices.
“Apple is a steal at these prices,” Bibb said.
“The market is penalizing Apple which is the best-managed company in not just the country, but in the world.” – Porter Bibb, Media Tech Capital Partners
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Direct link to video here.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]
huh?
Bullshit, I would pay twice as much for an Apple TV over a Samsung any day.
Finally someone else agrees with me. It is software, silly (along with a bunch of media deals).
This guy is right about one thing: Apple won’t compete in the “low margin television business.”
But that doesn’t mean Apple won’t do a tv. I don’t know if they will or won’t, but IF THEY DO it’ll be such a unique experience and of high quality that it won’t have to scrape by as a low margin product.
I think it was on MDN a day or two ago that the take was all about the paradigm shift that hasn’t happened yet. I can tell you that no one would have paid $650 for a cell phone a few years ago (that includes Verizon, etc.) but Apple reinvented it and now we all have one one (or a cheap knock-off).
If Apple recreates this product, people will be willing to pay enough to make it a profitable segment. And if not, the guy is right. Stick with your Apple TV, which is pretty good all by itself.
Apple would charge too much for TV to make it feasible to upgrade as often as they’re business model requires.
Using a $5000 computer for five years is getting your money’s worth.
Using a $5000 TV for five years is just sad. For so many reasons.
The real iTV has been on the market for years, they just call it AppleTV. It cost just $99 and can be updated over the internet.
We don’t yet know what an Apple TV would be. Presumably it is not just a nicer TV. It will somehow reinvent the business model of how content is delivered to consumers.
I explained the situation to Porter. He finally agrees with me.
Any iTV will be a high quality, premium product — not that it requires a premium price over other similar-sized TVs, but that it will be so well made and will have so many useful features that it will blow people away, so they will be willing to pay more. Not for the Apple logo, but for the Apple magic.
Apple also won’t play in the low end TV market. That’s for dumb box assemblers to have, just like Apple doesn’t have a feature phone, doesn’t have a netbooks, and doesn’t have $100 tablets.
Apple will NOT create an “iTV” if they did not see potential for iPad-like sales and profit. If all they have is an HDTV with a built-in Apple TV box, that’s just a more expensive “hobby,” and Apple will NOT do it. So, it’s simple. If Apple sees the potential, and has a strategy to tap that potential, AND can get all the required pieces in place to implement that strategy, THEN we will see the iTV.
ken,
I would not be so certain that the driver at Apple for what gets built and what doesn’t is how the result will sell. If we take them at their word, and I don’t know why we wouldn’t as it seems that we have ample proof of it, the driver at Apple is to make insanely great products and to put features into them that you didn’t know you needed and, once you have them, you wonder how you ever lived without them. Everyone seems so stuck in the past with the concept of what a TV is and what it can be. As mobile as we may be, there are still times when we do hang out at home, as a family, and I can certainly see a place in my house (at least a few really) where I can hang an Apple TV and not regret having done so. I have one spot picked out right now on which I’ve been waiting to hang Apple’s entrant. I remember when I bought a Palm Pilot and wished that Apple would release a phone that would integrate with my life and my chosen eco-system, rather than have to read on nearly every app’s small print, that it only worked with Windows. I’m a believer and a buyer. One thing I will never do is buy a Samsung TV.
Of course the main driver is what will ultimately sell and make a profit for Apple. And not just slim or small profit… HUGE profit. On the rare occasion when Apple is NOT expecting big results on a hardware product, they are very careful to call it a “hobby” at every occasion (the current Apple TV), as if to tell the world, we’re not that serious about this product (yet).
But otherwise I actual agree with you. Apple WILL release their (complete) “iTV” when they have the strategy for an instant huge hit, and all the pieces (including required partnerships) are in place and ready to go to implement that strategy. When the product is “insanely great” with features “that you didn’t know you needed and, once you have them, you wonder how you ever lived without them.” THAT is when Apple will release the complete iTV. Not before… until then, TV is just a “hobby” for Apple.
So all of the so-called experts who say iTV will fail or will not happen are wrong. It WILL eventually happen, because the current “TV” experience is ripe for an Apple makeover (redefinition), and it WILL be another HUGE success (on the scale of iPad) because Apple will not let it out of its box until everything is in place to make it a HUGE success. That’s how Apple works when releasing a new hardware product into a new market category.
“The market is penalizing Apple which is the best-managed company in not just the country, but in the world.”
Yeah well, obviously the market cattle aren’t actually thinking about Apple and its merits. They’re too busy stampeding in confused desperation to notice reality. They will tire out eventually and activate their neurons again.
Meanwhile: Stupid Apple rumors continue to accelerate in number, frequency and lunacy. I fully expect 2013 to break the record for stupid Apple rumors set in 2012, which broke the record set in 2011. Such is the price of fame and the inevitable effect of tech-illiteracy.
Apple Already makes itv it’s called the Cinema display how hard is it to add apple TV functions to it,?!
Phones were low margin before the iPhone
“Tablets” were low margins before the iPad
Most computers are low margin except for Macs
Anybody see a trend?
Apple can enter or compete in low margin industries and get high margins out of it.
Apple won’t make the iTV. Just like it won’t make the iPad mini. Oh wait, so they’re making the iPad mini ? Are you certain about that? Didn’t someone here tell us that there would be no iPad mini? Let’s see, who was that genius anyway?