Apple’s TV ambitions
Officially, Apple has not said anything about a TV, other than its $99 Roku competitor (something it jokingly references as a “hobby”).
But based on several comments over the years, many have assumed that an Apple TV was just around the corner. Steve Jobs, for example, told his biographer Walter Isaacson that the company had perfected the TV interface — that it had figured out how to get rid of the confusing system of multiple remotes and device inputs.
His successor as CEO, Tim Cook, told NBC’s Brian Williams last year that TV was an area of “intense interest” for Apple Inc. (NASDAQ:AAPL); an area of technology that had been “left behind.”
Unfortunately for Apple Inc. (NASDAQ:AAPL), it seems that it is the one being left behind.
Even if a true Apple TV was to make an appearance this year, it would be competing head-to-head with Microsoft’s Xbox One. Presumably, it would sport many of the features of Xbox One (voice and hand control, tablet integration, etc.) but would lack the power of the Xbox brand — something Microsoft has been investing in for over a decade.
Further, if Apple Inc. (NASDAQ:AAPL) opts to release its TV with an all-in-one form factor (screen+technology) it would presumably be much more expensive than Xbox One, which simply plugs into a user’s existing TV set.
In short, while Xbox One does not preclude Apple Inc. (NASDAQ:AAPL) from releasing a TV, it does limit any Apple TV sales. To put it another way, both the iPhone and the iPad have sold phenomenally well over the years, partially based on the fact that they’ve faced little competition (until recently).
But an Apple TV would find itself facing cut-throat competition from its first day on the market.
The smart TV revolution
Smart TVs have existed for quite some time. Samsung’s been offering app-enabled TVs for years, while streaming devices like the Roku allow anyone to get Internet content onto their TV.
Yet, these devices have not attracted the kind of mass appeal many were expecting — their interfaces clunky, the process of switching between them confusing.
With Steve Jobs claiming to have “cracked” the TV code, a fair number of people were assuming Apple would be the one to lead the smart TV revolution — but that doesn’t seem to be the case. With the Xbox One, Microsoft has set itself up to convincingly dominate the living room and win the smart TV war.
The article Apple’s Plan to Dominate the TV Market Just Went Down the Drain originally appeared on Fool.com is written by Salvatore “Sam” Mattera.
Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple and Netflix. The Motley Fool owns shares of Apple, Microsoft, and Netflix. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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