Bloomberg’s Mark Gurman has revived the discussion about an Apple television, though he’s framed it with considerable uncertainty.
[The company] might still consider the possibility of developing an Apple-branded TV set, something it is exploring.
Those who have followed this topic for a while may remember that speculations about this began as far back as 2011 …
At that time, analyst Gene Munster from Piper Jaffray adamantly claimed that an Apple television was not only in development but was on the verge of release.
We have been monitoring Munster’s forecasts that Apple would unveil a television set either “this year” or “within a year” since early 2011, with repeated assertions later that year, in early 2012, late 2012, early 2013, slightly later in 2013, and – more cautiously – late 2014. I believe I’ve probably overlooked a few.
He eventually changed his stance in 2015.
Even in the early days, the argument for an Apple TV didn’t add up much, yet the insistence from him and a few others left us wondering what potential innovations Apple could introduce.
Large-screen, high-spec TVs are commonplace today
However, while it was challenging to justify the idea back then, it’s even more difficult now to understand how Apple could find a viable niche in the market today, given that TVs have largely become commoditized.
Consider the top-selling television models available at Best Buy at this moment …
At the top is the 65-inch Sony Bravia 3 LED 4K TV, equipped with HDR, Dolby Vision, Dolby Atmos, 4K upscaling from HD, and numerous image processing technologies for films and gaming—all for just $650.
Following that is a 75-inch Samsung model featuring similar 4K capabilities, HDR, motion processing, and color enhancement, priced at $550.
In third place is a 50-inch Samsung with comparable specs at only $250.
While Apple’s approach has traditionally circumvented the competition regarding pricing, in other categories where Apple operates, a distinct gap in specifications often exists between Apple products and lower-end offerings. In the television market, impressive specifications are available at large sizes for prices that would be nonsensical for Apple.
Apple could make it happen, but it’s tough to discern a motive
Of course, there are still high-end options available. For instance, Samsung offers a stunning 114-inch microLED model for an astonishing $150,000 as a special order, and an 85-inch version for around $20,000 off the shelf.
Nevertheless, the reality is that practically anyone interested in a high-spec television can get one for under a thousand dollars, with manufacturers operating on minimal profit margins for most models. Television sales represent a very low-margin industry.
This does not mean that launching a high-end TV with an attractive design at a typical 37% margin would be impossible for Apple. They could indeed enter the high-end market like Bang & Olufsen. However, I suspect that they would sell these premium TVs in even lower volumes than the Vision Pro.
The Vision Pro’s rationale for Apple is not solely its current profitability but rather its strategic importance for entering an emerging market with vast future potential. This growth could happen in three, five, or even ten years—it’s difficult to predict. Nonetheless, it’s reasonable for Apple to believe in a future payoff and to establish its presence in anticipation of that moment.
Conversely, an Apple television lacks any foreseeable future potential for substantial growth.
I wager this will never materialize
Admittedly, I’m not the best person to ask—having gone over two decades without ownership of a television. However, if I were to purchase one, I would opt for something that closely resembles a simple display (or more realistically, a smart TV whose built-in applications I would ignore) paired with an Apple TV box.
This is the model Apple has embraced for years: buy any TV you prefer and invest $129 or $149 to upgrade it into an Apple-compatible model. When the built-in features become outdated, rather than replacing the entire screen, you can simply purchase another economical Apple device.
I believe this model will remain unchanged—what about you? Please participate in our poll and share your thoughts in the comments.
Photo: Samsung
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