Apple needs to jump on TV opportunity, analysts say

28.05.2010
Apple's success in mobile devices like the iPhone and iPad could spill over into the TV segment if the company decides to make a push for devices with larger screens, analysts said on Friday.

Engadget on Friday that a new version of the Apple TV platform was due for launch soon. It would succeed the current Apple TV service, which allows users to watch movies and experience other multimedia content on TVs. Apple declined to comment about the Engadget report.

The new platform would include new hardware, including a box with an Apple A4 chip that would allow for 1080p video playback, according to the report. The device will be priced at US$99, substantially lower than its current $229 price, and will come with the iPhone OS. The new device will provide content storage in the cloud, compared to hard-drive storage in the current device, Engadget reported.

The initial Apple TV service was not considered a success, but with Internet and broadcast content beginning to merge, the company could be poised for success in the TV market, analysts said. The sales of wireless and Internet-capable TV sets are taking off, and Apple has more brand equity as a device maker and content provider than ever in the past. However, the company will need to fend off TV makers, service providers and software makers who have their sights set on the burgeoning TV segment.

There is a lot of fragmentation in the TV space, and Apple has a content distribution advantage compared to its rivals, said Roger Kay, president of Endpoint Technologies Associates. Elements of broadcast and Internet content are starting to merge, but companies are still trying to figure out the best way to bring them to big screens, he said.

"Apple has made a recent try at TV and it wasn't so great," Kay said. "This is an important market that Apple shouldn't leave uncovered."