5 big challenges Apple will face in the TV business

“The maker of the iPod, iPhone, iPad and Macintosh faces high hurdles if it wants to upend the mature TV industry with a landmark new product, as many observers suspect,” Patrick Seitz writes for Investor’s Business Daily.

“Everything about the mythical iTV — some say iPanel — is the subject of fevered speculation,” Seitz writes. “The launch time frame, screen sizes, technological features, price and whether it will come with a new over-the-top TV service from Apple are subjects debated by industry watchers.”

Here are the big challenges Apple will face if it enters the TV business:
1. Finding its place in a mature market
2. Making a decent profit
3. Making a unique TV set
4. Creating its own over-the-top TV service
5. Finding a compelling way to display the TV sets at retail

Read more in the full article here.

Related articles:
Why Apple’s television will sell even faster than the iPad – April 26, 2012
Apple TV and the trojan horse strategy – April 20, 2012
Analyst: Apple considered investing in Sharp to aid development of television – April 13, 2012
Why TV fears the Apple iBroadcast revolution – March 23, 2012
Piper’s Munster on Apple iTV: ‘It will be the biggest thing in consumer electronics since the smartphone’ – March 1, 2012
PC Magazine reviews new 1080p Apple TV: Editors’ Choice – March 20, 2012
Strategy Analytics: With 32% share, Apple leading ‘Connected TV’ market with ‘hobby’ Apple TV – December 12, 2011

14 Comments

  1. Gee, these guys are really smart. I’ll bet Apple hasn’t thought about any of those items! And, yet again, the mistaken assumption there will be some kind of Apple-branded TV hardware.

    1. “There will not be a Verizon iPhone. EVER.” — Me
      “There will not be a touchscreen iPod. EVER.” — Me

      I’ve learned to keep my mouth shut when it comes to predicting Apple products. Yeah, an Apple-branded TV seems silly, but so did those other two things until Apple actually did them.

      ——RM

  2. All 5 of those “challenges” doing like “Theyvare not just going walk in”. The phone manufacturers fancied themselves a mature market as well.

    As a commercial AV systems installer, using third party systems like Crestron and AMX to tie together corporate boardrooms and video conference, I can tell you what most people already know: the consumer AV
    market is horrifically broken from a usability standpoint. It’s a needlessly complex morass of conflicting standards (or in most cases, manufacturer bastardized supposed standards) with no real thought about interoperability, functionality or Intregration. Even when you understand what’s going on, AV system setup is a nightmare of bad menus, irrelevant settings and bad ideas.

  3. 1) The mobile phone market was mature long before Apple came along.

    2) Name any major Apple product which is not sold at a profit. Alternatively name the popular consumer items sold with greater margin than Apple’s products.

    3) Making a TV system that isn’t a pain to use would be pretty unique.

    4) iTunes turned out to be a pretty comprehensive music store. Why won’t they be able to offer TV shows equally successfully ?

    5) There are 363 prime retail locations around the world that will be great for showing off such a product, despite the fact that in 2001, Business Week proclaimed “Apple will turn the lights off within two years and will have a very bad and expensive experience.”

  4. Ha. Captain Obvious! Or should I say Dr. Obvious?

    I don’t think Apple has a problem entering mature markets. You can say they did it with the iPhone, which they did… But!

    The TV market is more like the Music industry was a decade ago. The music industry was rather mature, wouldn’t you say?

    If Apple gets into TV on a serious level, it won’t be about just competing hardware wise. It will be about changing the way we use TV.

    I could see something like downloading HBO as an app, and paying for it through a sort of in app purchase. Maybe a “subscriptions manager” built into the UI.

    Add in full quality games, free TV with commercials, etc.

    Now you’ve ditched your cable box, gaming console, stereo, whatever.

    Only problem is bandwidth!

  5. Finding a place in a mature market?

    I guess the Cell Phone market wasn’t a “mature” market when the iPhone upended it on it’s head.

    Give me a break.

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