Reports have surfaced saying that Apple has begun talking to television component makers, lending credence to the oft-repeated rumor that an Apple-branded TV set may be in the works. Gene Munster, an analyst for Piper Jaffray, predicts it may arrive sometime this year.
The Apple TV set is one of the more persistent rumors surrounding the company, and there’s no doubt Apple is interested in the market—Steve Jobs’ biographer Walter Isaacson said Jobs wanted to “…do for television sets what he had done for computers, music players, and phones: make them simple and elegant.”
However, there is some speculation as to whether Apple will enter the market at all. The Apple TV, a digital media receiver designed to feed content to a television, hasn’t sold particularly well since its introduction in 2007. And it’s often been stated that Apple won’t enter a market unless it can revolutionize it—as they did with portable music players and smartphones.
So then the question becomes, can Apple revolutionize the television market? One of the biggest issues is content, and analysts see three potential scenarios: Apple could take the TiVo model of providing hardware but not content, model a set-top box and pull content from providers such as Hulu and Netflix, or adopt a paid-content provider model where Apple collects monthly fees for custom content.
According to industry experts, producing a TV isn’t a quick proposition—most take a year to design and produce—but it’s not impossible to imagine Apple pulling off a product release late in 2012.
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