Apple world’s most valuable company. Its next trick? TV

“When I spoke with Sonos Chief Executive John MacFarlane last April, he had a simple observation about Apple,” Brian Caulfield blogs for Forbes. “The bigger Apple gets, the bigger it needs to get.”

“And right now, Apple’s as big as it gets, surpassing oil giant Exxon Mobil Tuesday to become the world’s most valuable company,” Caulfield writes.

MacDailyNews Note: Exxon Mobil retook the lead before the markets closed today. Apple’s market cap stands at $346.74 billion, Exxon’s is $352.90 billion.

Caulfield writes, “Like Apple, MacFarlane’s company builds boxes — in his case networked home stereo systems — so he knows the terrain. His theory: Apple will have to attack the $100 billion television business next.”

Read more in the full article here.
 

Related articles:
Apple overtakes Exxon Mobil as world’s most valuable company – August 9, 2011
Analyst: Apple expected to launch 3 HDTV models by March 2012 – August 1, 2011

63 Comments

  1. The “not gonna happen, ever” people are fools. It makes perfect sense that Apple wants to put the Apple TV inside a TV!!!! Look at the iMac, fools. Apple put the computer in the screen. Why? Because Apple likes simplicity. DUH.

  2. No way. 2 things come to mind, first, apple doesn’t support blu ray, and second, apple price point would be high. People won’t spend 3-4K when they could get a comparable LED TV for half that. It just doesn’t make sense to enter that market.

    1. What does Apple not supporting blu ray have to do with this? You honestly think Apple would make a physical media combo tv? As far as I know all the blu ray player needs to do is hook into the HDMI port. There is nothing Apple needs to support. Second, why does the price point matter? Does it matter with Apple’s current product portfolio? Has it stopped them from surpassing Dell, Intel, Google, Microsoft, and briefly Exxon in market cap? People currently have access to vastly less expensive PC’s however they are increasingly choosing the Apple alternative. Seems to me there is somewhat of a parallel there.

      Apple doesn’t need to be the market leader in a category to make money. I can see them approaching this like they approached the iPhone. Even a small part of the pie, especially at the margins they will charge, will still net them a nice profit center. They will then go on to build a product that will exceed industry expectation and cause yet again another disruption in the marketplace.

      Apple’s key asset is not the products they make but the rabid fan base they have cultivated since the 80’s. They will look beyond the price and see the quality and actual value of an Apple Television. Others will line up behind them due to the halo effect products like the iPod, iPhone and now iPad has had on had on the perception of the company. Whether it’s a hobby or a full court press there will be people who will buy it.

      I don’t think this is a question of if, more like a question of when or at the very least why not?

  3. Actually, TVs are dead already.

    The only valid tools to aggregate all possible sources of video+audio have to be sophisticated computers with a trivial UI. Something like an Apple TV (or competitor).

    Then all you need is a display and a sound system. You want higher quality video and audio, you spend more money on the display and the sound system (which do need to be a single item, mind you).

    And the display can be a glorified 60-inch monitor, a projector, a tablet on your lap.

    1. “Actually, TV’s are dead already.” Peyo

      Perhaps, but big-screen living room displays are most definitely not dead. The center of most people’s entertainment universe is not going to migrate to the computer screen; and for most people, the iPad is strictly a secondary viewing device for video.

      1. The iPad upgraded and in various screen sizes can be the basis of Apple TV from a personal curret iPad size to larger screen sizes.

        Uniform software and apps- pick your screen size. Hold it in your lap or mount it or put it on a stand etc.

        I will opt for the smaller highly portable sizes. When not watching TV I will use it for graphics work etc. It will also be the computer for many people. On the other hand having several may also be a good option.

        Apple will make good deals on components and once again bring to market an Apple TV with features, at a price, that other manufacturers will find hard to equal.

        The iPad and it’s it’s progeny and siblings will become the computer, the TV, the informatin display etc etc. Where ever there is a use for a screen in personal life or in business, think iPad.

        The real revolution is coming.

      2. Sure, that’s what I meant with the “glorified 60-inch monitor”. A huge display on your living-room wall, which is only one option you have to view a program. Sorry to have been imprecise.

        And that is only one option. Protocols like AirPlay will allow you to move seamlessly between all of your installed displays/audio-systems.

  4. Apple wont do a TV. What they should do is a new device. A combination reciever — timecapsule– ATV. It has a high quality low power amplifier section like something NAD would do. It has a hard drive or 2 to backup all your idevices and computers.It stores all your content andcan stream to all devices with wifi, ethernet or Thunderbolt. It has apps and games. Then build wireless game
    controllers like the PS3 has and gaming would explode. Use the ipad or iphone/ipod touch to control it. You would have an entertainment system that JUST WORKS. Use any TV that you want and if you want Bluray just plug one in. I think the possibilities are endless. I don’t knownif there would be any limitations by the content providers with including a DVR but I think would be a problem area. I know I would want one. Oh yea, just ” one more thing” its all connected with icloud. Come on Apple, we are waiting.
    What would we call such a thing?

  5. All of this talk about the Apple Television is nice, but we all know that there is only one thing that will make such an investment worthwhile — figuring out how to get the programming to the home cheaper and better than the telephone, cable, or satellite companies can do it.

  6. “The bigger Apple gets, the bigger it needs to get.”

    WHY does Apple need to get bigger? Can someone please explain the logic of this statement to me? It seems to me that getting too big (and spreading themselves too thin) has been the downfall of some companies.

    1. The assumption is that you need to keep growing or you’re dying, because someone is out there plotting a better widget with which to eat your lunch. This is likely true for small companies.

      When you get larger, in order to get the same percentage growth you have to conquer even bigger markets. A $100M company that grows %30 does so by adding $30m of new business. Probably easy to do when they’re competing in a $1B market. a $100B company, in order to grow %30 needs to add $30B of new business, and $30B is larger than many entire industries. And doing that each year is extraordinarily hard.

      So, for apple to keep growing at the rate it has, it requires ever larger gulps of new business. Apple is putting away more profits in cash each quarter than many industries make in a year.

      Where these analysts may be wrong is in assuming the size of the technology markets Apple plays in are fixed. I see Apple as being a minority in the entire cellphone and computer markets, so Apple has room to grow… but the analysts figure that there is only so much room for apple to grow.

      This is why apple’s stock price is pretty low…

      1. Thanks for the explanation. It sounds like the assumption is that a “healthy” company needs to keep growing at the same rate. But why? The reason for necessity of non-stop growth isn’t at all obvious to me. In fact, it doesn’t make much sense at all.

  7. LOL thy won’t sell TV’s because there’s no room in the apple stores?? OMG that made me laugh and damn hard. I hope it’s meant to be a joke otherwise it’s a foolish statement.

    Anyhow this isn’t about apple selling TVs it about apple tackling the TV INDUSTY! Distribution etc.. It won’t be long before you can install live TV channels an an Apple TV the way you install apps now.
    No room for TV’s … hilarious.

  8. Apple might just conceivably sell only one TV model. A high end, high quality, “retina display” Apple-branded model (manufactured by Sony?). Maybe just in two sizes, 54″ and 60″. Stocking would not be a problem as there would only be one in each store. Orders delivered by UPS (say).

    Apple occupies the quality end of the PC market, and the phone market, and has single-handedly created the tablet market.

    What do you think?

    1. Apple is not going to license the software or have Sony or others build the hardware, other than as an Apple branded Apple spec product.. It will be all Apple branded period.

      It will be a continuation of the iPad. See abve. They don’t need Sony for that.

      1. Apple branded TV to take advantage of a manufacturer’s economies of scale for the standard TV innards to which Apple adds the magic sauce? Might increase the margin for Apple.

  9. At some stage tv, the internet, telecommunications, digital entertainment and to a lesser extent general computing will all come together. The only reason they aren’t now is because they all come from different origins. Of course Apple is heavily involved with how that will happen so while the text of these rumours may be bs the core concept is absolutely correct no one can doubt that surely.

    Apple has created the tablet as a direct indication of this movement it is at present predominantly an entertainment device (it had to be) but can anyone doubt that increasingly it will become the prime mobile method of computing in time. At which point it becomes the very device we are talking about. It is inevitable that the home will go the same way and inevitable that Apple will present a solution to that even if they have yet to conclude what that will be. And only a fool will say that won’t include a tv in some form. That said broadcast tv itself will decline rapidly over the gestation period of such products and again Apple will be at the heart of that too.

  10. What ever apple do Apple TV can never be as big as iPhone or iPad if it does not cater to the Asian market .

    As such this article and if the product comes out is a resounding ” meh “

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