A quote from Steve Jobs once ignited a long-held fascination with the possibility of Apple creating a television set. Although the product never materialized, the aspiration persists, fueled by a recent rumor from Mark Gurman suggesting that Apple is currently ‘exploring’ the idea of manufacturing a TV. Here are five compelling reasons I believe Apple should indeed venture into the television market.
It’s an Established Field for Apple
While Apple has never produced a television, it possesses the expertise and experience necessary to do so.
- Displays are a core competency for Apple, highlighted by this year’s M4 iPad Pro, which boasts ‘the world’s most advanced display’.
- Audio technology is another strength; not only with AirPods and HomePods but also with the built-in speakers found in devices like the iMac.
- The company already has a TV operating system in tvOS. Although it may have flaws, the foundational elements are in place.
In essence, crafting a high-quality television wouldn’t pose a significant challenge for Apple. Additionally, the brand’s established reputation in these areas would help consumers justify a higher price point.
Emphasizing User Privacy
Apple prioritizes user privacy highly. In contrast, modern televisions often perform poorly in this regard.
Smart TVs frequently sell user viewing data to third parties, leading to advertisements displayed on the home screen, screensavers, and elsewhere, creating a frustrating user experience. A privacy-focused TV from Apple could serve as a compelling differentiator in the market.
Conquering the Home Sphere
Televisions typically serve as the focal point of a home. While not every household has smart speakers or smart light fixtures, nearly every household owns a television.
For Apple to make meaningful strides in the realm of home technology, producing a television would be essential.
Merely offering the Apple TV 4K isn’t sufficient; many perceive it as a superfluous purchase given that most televisions already come equipped with streaming apps.
For a significant number of consumers, purchasing a television alongside an Apple TV 4K is out of the question. However, they might be inclined to consider an Apple television when it’s time to upgrade—even if the total expenditure ends up being higher.
Once an Apple television is integrated into their environment, users are more likely to invest in additional products such as HomePods, HomePads, and other smart home devices.
Service Revenue Potential Despite Narrow Margins
An Apple TV might operate with relatively low profit margins for the company.
So, from a fiscal perspective, why undertake such a venture? The answer lies in service revenue.
Those who purchase an Apple television are more likely to engage with Apple’s existing services. Including an extended trial of Apple One with each TV purchase would be a logical strategy, allowing users to experience Apple TV+, Apple Arcade, Apple Fitness+, and Apple Music at no extra cost. Following the trial, many are likely to continue their subscriptions.
A significant benefit may also stem from the revenue share Apple could earn from third-party applications and services on its platform. Just as Apple does with the Apple TV 4K, a percentage of subscription revenue could be generated from this model.
Integrating Apple Intelligence with HomePad
There is significant overlap in functionality between the anticipated ‘HomePad’ device and a potential standalone television.
Siri’s upcoming Apple Intelligence enhancements proposed for spring may offer enticing features for users. If executed correctly, transforming your television into a voice-activated computing platform would be exciting, facilitating not just TV viewing, but also managing home devices and showing important data through widgets and more.
Conclusion on Apple TV
The notion of Apple developing a standalone television remains largely a fantasy, yet I believe it should not be. I hope the company’s current exploration of a TV translates into a tangible product this time around.
While the majority of iPhone users may hesitate to invest in a premium television when more affordable alternatives are available, there is a substantial segment willing to do so.
What are your thoughts? Should Apple enter the television market? Share your opinions in the comments below.
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