Morgan Stanley analyst Katy Huberty reports that Cupertino is developing a "Smart TV prototype" that could provide Apple with an opportunity to meld TV and video programming, gaming, DVR functionality, and even /-style apps and video chat into a single product.
As by Apple Insider, Huberty told investors in a Friday note that Morgan Stanley's "checks in Asia" hint that Apple is working on a new entertainment device that might dwarf the capabilities of its Apple TV media streamer, which is already selling well.
Introduced in October 2010, the routes iTunes, Netflix, and other Internet-based content to the living room. The tiny, $99 device has proven more popular than its larger and pricier predecessor. By late December 2010, Apple had already .
Old Rumor, New Spin
Huberty isn't the first analyst to suggest that an Apple-branded television is in the works. Way back in August 2009, Piper Jaffray analyst Gene Munster predicted that Cupertino , according to Fortune's Philip Elmer-DeWitt. Munster later , stating that an Apple HDTV set would arrive as early as 2012.
Indeed, an Apple-branded TV makes sense. Video-streaming services--Netflix in particular--have with consumers. And excluding iTunes movie and TV show rentals, the living room represents a largely untapped market for Apple's well-stocked online store, the App Store in particular. FaceTime, of course, would be a natural for an Apple-branded set with an integrated HD camera.
Another possibility is that Apple's rumored Smart TV won't be an actual television, but rather a standalone device that connects to your HDTV--sort of an Apple TV on steroids. When you consider that millions of consumers have already upgraded to big-screen HD sets, the later approach has its merits.
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