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Why iMacs will get Apple TV, not Apple Television

Posted on December 7, 2011 by Jeremy Toeman

Ah, Apple punditry, rumors, and speculation.  And back into TV land we go.  Today from Forbes:

Wedge Partners analyst Brian Blair this morning asserted in a research note that that the next version of the iMac, likely in the 2012 first half, will include some new TV functionality – basically, turning the desktop Mac into a bridge to a full-fledged television business.

This, plus another analyst who seems to know the exact sizes of the new long-awaited Apple Televisions is certainly fun reading.  But what parts make sense?

iMac + Apple TV?
Yep, makes sense.  After all, we’ve had Front Row in Macs for a long time now, it’s way overdue for an update, and having it function identically to Apple TV is a nice fit.  I’m buying this one.

iMac + Apple Television (aka iTelevision)?
To be a “television” a product, for the most part, includes a buit-in TV tuner.  It also has multiple inputs, and has all sorts of requirements/parameters for video display.  These components are effectively inconsequential to add, cost-wise to an iMac, so from a pure “could they build it feasibly” perspective, this actually passes a sniff test.

However,  what is this new product?  Is it a big computer “Now, from Apple, a 46″ iMac that you put in your living room”?  Is it a small TV “Now, from Apple, a 27″ iTelevision that fits nicely on your desk”?  Is it all of the above “Now, from Apple, in 7 different sizes, with 11 configurable options, the iMacTV.  We cook it your way”?

You know what it is?  Frankenstein.  Confusing.  To throw in some industry jargon – it’s what we’d call a “hodge-podge”.  Hard to explain.   How many other products that Apple ships are described like this?  None.  It’s the antithesis of an Apple product.  It’s something a PC company might do, certainly, but not Apple.

I still believe that iTelevision is coming.  I think we’ll, at the very least, learn a lot about it in 2012.  But there’s no weird “mashup” device coming.

They don’t ship iHodgePodge, not at 27″, 32″, or 55″.

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Posted in Convergence | Tags: Apple, apple television, apple tv, imac, itelevision, itv | 1 Comment |

Expectations for Tim Cook's Oct 4th Event

Posted on September 21, 2011 by Jeremy Toeman

The rumor mill has it that Oct 4th is the next big Apple event, in which we can expect to see Tim Cook kick off his term as CEO.  Here are some of my thoughts on what we can expect , in no particular order (note that I’m skipping all the pre-announced stuff, like iOS 5, etc):

No Steve Jobs
A variety of folks are speculating on whether or not Jobs will make an appearance.  I’d say absolutely not, other than possibly in the audience.  Jobs walking on stage would undermine Tim’s role as CEO and send a weak message to the media.  It’s time for Cook to run the show, and Wall Street in particular will be paying close attention to his every move (yet another example of how Wall Street’s mere presence harms us, but I’ll save that snarky feeling for another time. too late).  Granted I think we’d all love to see Jobs make an appearance, but unless they can figure out a way to do so without sending a lack of confidence message, I’d assume he stays on the sidelines.  This, by the way, will lead to rampant speculation about his health, again (under the veiled theme of “its news!” – tip: it isn’t, let the man be.).

Major Refreshes to Most Products
With one exception (below), I believe almost every product the company makes will get a refresh, either major or minor.  We already know about iPhone 5 and iOS 5, but rumors across everything else have showed up as well.  Per the above, it’s time for Cook to show his quality, and I think they’ll opt for over-delivering.

No iPad Updates
It’s just too soon.  Apple would frustrate their existing (huge) iPad base, and steal from whatever they’ll be doing in 2012.  Also, a complete dearth of competition in the space enables them to take their time and raise the bar next Spring.

New Presentation Style
Whomever created the “Steve Jobs Presentation” obviously deserves some kind of award.  But what made his style so special is how well it was tuned for Jobs.  I believe they’ll re-create the concept for Tim to enable him to deliver his own personal touch.  I don’t think it’ll be a massive departure, but I do expect some change.

Major iPod Changes
I wouldn’t be surprised if, starting next month, the iPod product line is reduced to the Touch and Nano (with WiFi), and everything else is gone.  That really is the purpose behind iCloud, and just like the company is killing off physical drives, it seems like the traditional iPod isn’t part of the new vision of the Apple digital lifestyle.  I’d like to see some minor “apps” for the Nano personally, but that might be a stretch.

One More Thing – iTelevision?
If they even continue with the “One More Thing” it could be the actual launch of the fabled Apple Television Set.  Or it could happen in 2013.  Or never…

Tune back on Oct 5th to review how I got 5/6 of these things wrong. 🙂

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Posted in General | Tags: Apple, apple television, apple tv, icloud, ios 5, ipad, iphone, itelevision, presentation, Steve Jobs, tim cook | 1 Comment |

Musing on Apple Building a Television

Posted on August 26, 2011 by Jeremy Toeman

I don’t think I’ve ever waffled on a topic as much as this one.  Back in ’07 I wrote two articles on Apple “owning” the living room and building TVs.  Ever since, I’ve gone full tilt in both directions.  Until about a week ago, I agreed firmly with Erik Schwartz on the topic, as he wrote today:

I am quite sure that there has been a team at Apple working on TV projects for literally the last 20 years. I am also quite confident that they are not going to release a TV in the near future.  (read more)

He continued to espouse on the four issues he saw: Margins, Replacement Cycles, Logistics, and Integration.  And on all four counts, I’ve agreed with him.

But now I have second thoughts.  My friend and coworker Adam Burg has long been a believer of “iTelevision” as has Dijit (and TiVo and many others) investor Stewart Alsop (who was quoted today in VentureBeat’s article on the topic).  For them, and many others, the rumors were way too much smoke for a lack of fire.  And on that point, I tend to agree that the rumors are a little stronger than what the Apple PR team will let flow when there’s no substance whatsoever.

So first, the case against iTelevision

Generally speaking, the two strongest “con” arguments are:

1. The margins in TVs suck, and since you can’t get away from the reality check of what it takes/costs to make a TV (hint: glass), the margins will suck for Apple too, and Apple doesn’t play in the “sucky margin” business.  This would force Apple to make a notably more expensive TV than anyone else, and even Apple can’t somehow get people to spend $1500 on the same sized screen they can have from Samsung for $1000.

We make THIS many!

2. The TV replacement cycle sucks, as the average family won’t replace a TV for ~7-8 years, and that’s not a world Apple typically plays in either.  Unlike phones (1 year) and PCs (2-3 years), consumers won’t be up for buying a new set very frequently, and the concept of having an “outdated” television will cause more infuriated people than Apple typically likes to create.  Note: this is a concern of the entire “Smart TV” industry (well, it’s probably not, but it really should be), and you can mark my words that backlash is going to hit these manufacturers in the next 6-12 months.

I’ve had a 3rd argument personally, which is Apple can’t make an iTelevision for $1000 whilst selling a “$99 upgrade” Apple TV product that brings the same functionality/services to any other manufacturer’s device.  Now the counter to that would be the Apple TV is there to enable wider content consumption, etc, but it’s still generally considered a “no-no” to cannibalize your own market.

We'll pre-announce while our existing product is on the market. What could possibly go wrong?

So now, why I’ve come around, and the case for iTelevision. I’ll start by refuting the arguments above.

1. Apple makes awesome margins on everything. If Apple’s building a TV, they’ve figured out their own amazing supply chain methodology to do it profitably.  Very profitably.  So if everyone else is selling a 50″ LCD for $999, they will too, only instead of making less per unit than the price of a really good bowl of soup, Apple will rake in the cash as they go.  They are the only tablet manufacturer selling at a real profit (HP not withstanding.  What, too soon?),  and I see no reason why, if they enter this space, they won’t do the same thing.

2. Apple will change or solve the replacement cycle issue.   Before iPhones, the US market was radically less likely to buy a new phone every year.  I have a much harder time accepting that Apple can successfully convince people to lug a 50″ screen home (and correspondingly, out of their home) once a year (or every other year).  This is way too painful a process, even for a fanboy.

I'm on a truck!

This implies either Apple can make a TV that is easy to move/replace or the components which would require upgrade can be guaranteed upgradeable for a few years.  Both are actually feasible, though the former requires some more impressive technology (flexible or roll-up displays, for example, could do it).  The latter is probably more likely – after all, even the original iPhone can still run a lot of the apps that are on the market.  What would matter the most here is that each generation of iTelevision is guaranteed to mostly compatible with the same content offerings as future generations (in other words, regardless of apps and whatnot, if Johnny Homeowner’s TV can only play 1/3 of the movies as his neighbor, he’s pissed – if he can play mostly the same stuff, just no Angry Birds, he’s less so).

3. They could coexist, if the other product is iTelevision and it isn’t the same thing as an Apple TV. So if the rumored iTelevision isn’t about “Apple TV inside a flatscreen” and is instead something new/different, this could be more feasible.  I’ve heard and debated scenarios ranging from built-in DVRs to TV tuners to CableCard and more.  Here’s all I know: whatever they do will be fully end-to-end thought out.  You won’t buy an Apple TV then have to go to the mall to pick up a CableCard.  You will do everything in an Apple store or online (or from your phone), and it’ll just work.

If I have to weight the pros vs cons these days, I have to say, the pros seem to have it.  Will it come out in 2011 or 2012? Hard to say.  Will they dominate the TV market the way they dominate tablets? Unquestionably NO, but they’ll probably profit more off the sales of TVs than anyone else, more akin to what they do in phones.  Will they shock us with their offering when it comes out? Probably, though probably in the same “why isn’t everybody just doing it that way” style they do with everything else.  Will they create a massive gaping wound in the side of the TV industry, and opportunity for a brand new type of ecosystem to emerge?  Absolutely.

Now, back to the waffling.

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Posted in Convergence, Gadgets | Tags: Apple, apple tv, Convergence, itelevision, TV | 12 Comments |

About

Jeremy Toeman is a seasoned Product leader with over 20 years experience in the convergence of digital media, mobile entertainment, social entertainment, smart TV and consumer technology. Prior ventures and projects include CNET, Viggle/Dijit/Nextguide, Sling Media, VUDU, Clicker, DivX, Rovi, Mediabolic, Boxee, and many other consumer technology companies. This blog represents his personal opinion and outlook on things.

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