Apple and TV Sets

There has been a lot of speculation recently about Apple’s possible move into the TV set market, which seems like a nature next step after the iPod, iPad and Apple TV set-top box. I don’t doubt that Apple could launch a competitive TV but my suspicion is that they’ll continue to iterate the current product rather than launching a new display panel business. Here is my thinking.

All of Apple’s existing media consumption devices are self-contained, high-quality, tactile products (except the existing Apple TV, which is neither tactile nor self-contained). TVs are remote objects (poor user experience from traditional dumb remotes could be a differentiator for Apple), viewed from across a room; when was the last time you touched your TV? Often TVs work as part of a system with amplifiers, set-top boxes, DVD players and other specialist equipment. These devices are outside Apple’s control and I don’t think Apple will want to get into the amplifier business; consistent user experience differentiates Apple’s products from the competition but this is tricky to deliver if you don’t build everything in the system.

What about physically building the displays? Apple’s existing panels are well received as computer monitors and their legendary design team may well be able to deliver a stunning TV set. Apple’s supply chain management is superlative but even they might find it difficult to maintain margins while competing on price; at £899, Apple’s 27” displays are significantly smaller (although possibly of higher quality) than similarly priced Samsung TVs (John Lewis have a 40” Samsung LED TV for £849).

Branding could also be tricky. “iTV” would be the obvious name but that runs into a problem in the UK, where ITV is the name of a major broadcaster. John Gruber suggests that the situation is similar to that of the iPhone trademark, which was owned in 2007 by Cisco. He might be right but I think it would be a much bigger deal for ITV to give up their company name and established brand than it was for Cisco to surrender the almost unused iPhone trademark.

What about new features or use cases? Nobody could deny that Apple are technical innovators but TV has been around for a while and as The Economist points out, the killer app for televisions has turned out, so far, to be television. The obvious new feature is apps but TVs are social objects and single-user apps are unlikely to appeal in the same way they do on personal iDevices.

Finally, once these problems are solved and the new TV exists, what has been done that couldn’t have been done more easily with a set-top box connected to someone else’s display? What is it that Apple can do with once they control the entire user experience, from media sales to on-display delivery? My guess is that this is what Steve Jobs was referring to when he claimed to have cracked TV. We can only hope.