Though unsuccessful, Apple can boast of experience in the TV market, which gives it an early mover advantage, Kay said. The company also has the reputation of providing a good user experience for customers on devices like the iPhone and iPad, and the brand equity could carry over to the TV.

One of Apple's rivals could be Google, which along with partners Intel, Sony and Logitech last week announced the Google TV platform, which will blend broadcast TV and Internet into one interface. Google will supply the software, and the service will be available later this year in some Sony high-definition TVs and Blu-ray DVD players, for which Intel will supply the Atom CE4100 chip.

It would not be a surprise if Apple announces something around Apple TV as early as the developer's conference, said Tim Bajarin, president of Creative Strategies. Apple's Worldwide Developers Conference will be held in San Francisco from June 7 to 11.

"People think that Apple may be responding to Google, but it may be the other way around," Bajarin said. Google CEO Eric Schmidt was part of Apple's board in the past and understands Apple's direction, he said.

Apple's mobile product strategy -- like with the iPhone and iPad -- revolves around bundling hardware, software and services. But the strategy may need to change in the TV market, analysts said.