Analyst: Apple will enter the flat panel market TV market

“Yesterday’s Wall Street Journal noted that companies like Office Depot, Home Depot, and RadioShack are branching out into flat-panel TVs.. With companies like Circuit City and Best Buy reporting robust profits driven by flat panels, we shouldn’t be surprised at these retailers suddenly embracing flat panels,” Carl Howe, principal analyst, writes for Blackfriars’ Marketing.

“But the recipe for flat panel HDTV success is complicated. Dell’s HDTV business, for example, has basically flopped because of poor quality and worse marketing. HP’s flat-panel business is similarly floundering,” Howe writes.

“But it is a different story for Apple, just as music and PCs were. Apple has design icon Jonathan Ive (among many other great designers), one of the best and most powerful brands in the world, incredible differentiation, and is repeatedly ranked number one for product support. It has a chain of 161 stores that generate 67% of the revenue of Best Buy with 10% of the floor space. And most importantly, Apple sells experiences, not low-priced hardware. They’ll offer two or three choices to avoid the tyranny of too much — and amaze everyone again by making more profits on fewer products,” Howe writes.

Howe writes, “In my view, it’s not a matter of if Apple will enter the flat panel market; the only question is when.”

Full article here.

[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]
Apple-designed and branded flat panel TVs with integrated “iTV” (or more?) make a lot of sense.

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  1. “It has a chain of 161 stores that generate 67% of the revenue of Best Buy with 10% of the floor space.”

    Very telling. I just saw the new Nano and 24 inch iMac up close today. Is a strong want a justifiable need?

  2. Doubt it. Apple is not keen on becoing the next Sony– its hands into everything while losing focus. I think iTV suggests that Apple is seeking use the growth of HD tvs, but isn’t seeking to provide them.

  3. Anything new Apple does will likely be something that extends the digital hub strategy. Whether it’s their own products, like iPod and iTV or outside sources, all of them add value to the Mac experience. It’s a very smart move actually, if the fish bigger than you are taking up most of the pond then build your own, and have 100% pondshare all to yourself.

  4. Fact is

    Apple, brander of everything, maker of nothing.

    Apple better figure out the next evolution of computers, something every buisness must have and shut M$ out for a good ten years.

    The consumer market is already flooded and the Apple brainwashing only lasts for so long.

    Jesus, I step foot into a Apple Store for the first time in all my life as a mac user and I felt like they were about to pass the kool-aid.

    I was miffed.

  5. The only way Apple might do this is if they can offer something other companies can’t.
    I guess it’s possible, but I don’t think its likely… Apple goes into a market when they can offer something different – something with unique capabilities. And what capabilites are you going to add to a flat panel to make it a killer product that will reach a large audience in a reasonable amount to time?
    However a separate box like iTV, having unique Apple technology, that can interface with every TV/flat panel out there makes perfect sense. The potential market is huge and it will be much easier to reach a wide audience!

  6. There is absolutely no doubt this will happen. For the life of me, I can’t see Apple sitting on the sidelines regarding HDTV flat panels when they have created so many other parts of the puzzle for the digital hub. I believe Steve and the gang are banking on the fact that traditional TV’s and its antiquidated networks are going bye-bye sooner than anyone is realizing. In 10 years, it’s impossible to believe that we’ll all be sitting in the living room watching network television the way we always have. The internet, espcially in the last year, has become a ferocious promoter of video. You Tube, CNN, iTunes – you name it, it’s everywhere. It’s really not hard to imagine that as bandwidth continues to improve, so will the quality of the video. In less than 3 years, video will be offered at a minimum of 640×480 resolution everywhere. It just keeps getting better. And unlike network TV, the internet has millions of new videos being posted everyday. My gut tells me that this iTV thing is going to be astonishingly huge. What happens if OS 10.5 has a feature built into that streams the operating system – not just iTunes – to your Apple HDTV? Then the whole family can sit down and watch ABC’s streaming TV shows or iTunes, or surf the internet. To me, it’s just way too obvious that traditional TV and all its rules are gone. The internet is going to replace it completely before 2010.

  7. 67% mostly likely means on a per square foot basis, the usual metric for retail sales.
    example. say BB makes $100 /sq.ft with 100,000 sq.ft of total space
    Apple makes $67/sq.ft with 10,000 total sqft. ( all number strictly for illustration)
    which works out to $670 /sq.ft if they had the same 100,000 sq.ft of space.

    Holy schnikies indeed!
    Now we know what pays for the big Cube.

  8. I would just be happy if Apple put out a display that had multiple inputs. That’s the problem with their current line of diplays, no place to hook a standalone HDTV tuner to it and no A-B switch….


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