Apple’s next multi-billion-dollar business: Connected televisions?

Apple Online Store“For more than a year now, Piper Jaffray analyst Gene Munster has been insisting that Apple is plotting a move into the television business – and soon. He thinks the company will start selling TV as soon as the end of calendar year 2012,” Eric Savitz blogs for Forbes.

“Munster was at it again on Thursday, asserting in a research note that Apple ‘will enter the TV market with a full focus, as an all-in-one Apple television could move the needle when connected TVs proliferate,'” Savitz reports.

Savitz reports, “He thinks Apple could sell 1.4 million units, adding $2.5 billion in revenue, growing to $4 billion in calendar 2013, and $6 billion in 2014.”

Full article here.

[Thanks to MacDailyNews Reader “Mary J.” for the heads up.]

43 Comments

  1. The last question Jobs answered at the D conference displayed the detail with which they have studied this space.

    The company masterfully puts foundation elements in place and then uses them to assemble an enterprise with a scale which acts as a barrier to entry for competition.

    They might sell a television, but they know the best companies for them to compete against are the content distributors swamped with debt – those are the least agile or likely to be able to survive a frontal assault on their market space.

  2. It will happen – Apple is a consumer electronics manufacturer since Jobs made this distinction and changed the company’s name to Apple Inc.

    TV will never be the same after an Apple TV…

  3. Not going to happen any time soon.

    Apple has incredible brand recognition, and I’m sure they could sell millions of televisions, but why would they?

    From a quick google search, it looks like the profit margin on flat panel televisions is only 5-10%. There is NO WAY Apple would get into a market like that.

    Apple innovates and reinvents markets. Unless Apple can turn the television market on its head, they aren’t going to join it.

  4. Gene is crazy. People don’t replace their TVs often enough, and Apple isn’t going to spend a lot of R&D on screen technology. Simply building TVs with AppleTV built in isn’t enough.

    The only thing I could see happening is a revolutionary 3D type of display, no glasses required.

  5. Uh, Gene? Apple has already moved into the television business. It’s called Apple TV.

    And why would they ever start making TV sets? That’s so… Where the puck was. People are increasingly consuming their entertainment through the Internet via their computers. I think A-TV is as much a go at televisions as Apple will ever make.

  6. I couldn’t justify an Apple TV. My standalone, entry-level 42″ TV can play video formats Apple refuses to support (avi, divx, wmv), from any USB device; and if I want Netflix that’s what my PS3 is for. Youtube sucks on PS3 though, so if I *really* want that on my TV I’ll hook up my Macbook.

    Now, Apple’s in the business of shattering expectations, so I’m not dismissing a true Apple TV out of hand, but I can’t see myself being an early adopter.

  7. not going to happen guys, makes no sense. maybe in 5 years, but only to ‘complete the apple aesthetic’, not because it’s going to be a big money maker. by that time i might even be able to afford one of them (med school was a tedious choice).

  8. Sony and other traditional TV companies struggle with their earnings because of the fierce competition in this business. They all try to pimp the dumb display to a intelligent, connected, high price TV set, but all you have to do as a consumer is to take the cheapest device with a fair display quality and absolutely NO integrated gimmics and plug in a 99$ AppleTV box.
    It is that easy and because of this Apple has no interest in this business. And who definitely knows, if they spend all 4 Billion dollars only for display contracts and nothing for other important things like 28 nm Chip production capacity.

  9. This is the fun thing about Apple. The more people dump on an idea like this, the more I think it is something Apple will tackle. We still don’t have a satisfying explanation of just how the NC data farm will be exploited. And with money in the bank, Apple is in a position to totally revamp not only the television, but the programming and delivery method. I wouldn’t put it past them.

  10. “Apple will never introduce crap into the $500 netbook space”
    >iPad creates a brand new category

    “Apple TV is just a hobby”
    >Apple’s connected TV will blow everyone’s idea of “connected TV” out of the water

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