Tech Broiler

Jason Perlow and Scott Raymond

Apple Television: Are they aiming too high?

By | October 27, 2011, 6:33pm PDT

Summary: The TV market is already saturated with numerous manufacturers that build inexpensive units that look gorgeous. Why reinvent the wheel?


In the recently published bio of Steve Jobs, Walter Isaacson described the future plans for an Apple-branded television. It’s ambitious, but not entirely unexpected. For several years now, Apple has been producing the Apple TV entertainment device. Considering their focus on consumer products, it’s a good strategic move.

The only question is, should Apple actually build and sell a television?

Don’t get me wrong. I think the product will likely be an attractive, quality device that will look stunning and be easy to use. But is it really necessary? The TV market is already saturated with numerous manufacturers that build inexpensive units that look gorgeous. Why reinvent the wheel?

Of course, it goes without saying that Apple is famous for reinventing the wheel and making a killing doing it. The plan to use the Siri technology from the iPhone 4S is a great decision. It’s still new, and will have some growing pains. But the ability to speak in plain English to your video entertainment device is a big step. Before VCRs went extinct, there were plenty of people that couldn’t get the display to stop flashing 12:00. Reducing the complexity of using an entertainment system is a major step forward.

The displays that Apple uses in its products are excellent. The Apple Cinema displays are stunning. But they’re also quite expensive. You can buy a similar monitor from a competing manufacturer for less than half the price. Unless Apple provides some amazing incentive in terms of features and service, it’s possible that an overpriced TV product from them will not sell very well–especially not in an over-stressed economy.

I’m not saying that Apple should give up on a television product. I simply think that they should focus on an expanded product built on the existing Apple TV platform. Make it bigger. Add PVR capabilities. Put Siri in it. Then allow it to be plugged into a TV of our own choosing. The market for televisions is huge because there are so many different categories that consumers want, based on size, location, affordability, and so forth.

Apple isn’t known for having numerous different options for their product lines. Are they going to want to produce a dozen different TV products? Will they be able to compete price wise? I honestly can’t say. They might sell enough to garner a niche market. I think, however, we may have to actually wait until they bring something to market before we can get a better sense of how this will play out.

I think the best direction would be to have a trial run of an Apple television, and expand Apple TV devices that hook up to existing TVs developed in tandem with them. That way Apple could satisfy both the high end and cost-conscious shoppers.

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Scott Raymond has been a technologist and system administrator for over 25 years.

Disclosure

Scott Raymond

I am the IT Manager for a high end audio and network systems integrator in northern Califronia. My wife works at Adobe Systems, Inc. Whenever I write an article that might involve Adobe or its products, I add a disclaimer at the top of the article to make sure she is not involved in any way. We have a small bit of stock with AT&T and no other major investments that would cause conflict.

Biography

Scott Raymond

Scott Raymond has been a technologist and system administrator for over 25 years. Starting as a hobbyist in his teens, Scott quickly learned that he could translate his passion and knowledge into a full-time career. He currently works as the IT Manager for a high end audio and network systems integrator in northern California. He has written technology articles for various publications in the past and began contributing to ZDnet as a guest blogger on Jason Perlow's Tech Broiler. Scott and Jason met in New York in the 1990s where they co-managed the New York City Palm Pilot Users' Group.

In his spare time, Scott is a trained chef and avid bicycling enthusiast, as well as a voracious reader of historical, science and horror fiction. He is a huge fan of pop culture, with a wide range of interest in TV shows, movies and games.

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abgfmal 70 dax
bmakrekwe29-24378966914875991717672619018018 24th Nov
fvsxaj,rjdztwng12, gkdcs.
It's not "reinventing the wheel" and to think that is extremely naive. With all the advancements and choices related to how we watch programs, movies, and even short clips (how to's, funny amateur segments, etc..(see YouTube)), the living room entertainment center is in DESPERATE need of some reinventing. Huklu, NetFlix, YouTube, iTunes, and even individual broadcasting sites like HBOGo and NBC.com are all looking for a way to jump from device to television.

For a technology writer not to realize that is really disappointing. As a matter of fact, if you had any technological insightfulness you would have written a piece that was the exact opposite of this.
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@evanwins
instead of focusing on the AppleTV, something I can HDMI right on in to any TV I have it have work the exact same way as a combo unit would.

So Apple should go ahead and combine the two as that's a much smarter choice in what way?
@William Farrell It's not that it's a smarter choice, but that it's a choice. Many people like individual self-contained products that do everything they need, while others prefer components that interconnect. It is good to provide products for both types of consumers: think of the iMac, which is self-contained, vs the Mac Mini, which is a component.
@utopiansky
What makes you think the current providers are going to relinquish any control?
@evanwins I agree, but at the same time, I'm concerned that Apple may be focusing so much on the technology inside that they are forgetting the most important part - a premium display panel designed for optimum display of entertainment. They can't just scale up a desktop display. If they want to court video aficionados with a pricey, high-tech entry, their choice of manufacturer for the display panel is critical. They can't just take the cheapest bid from some tertiary player in the display market. They need to stick with the top manufacturers, who they are mostly suing right now. In addition, those of us who spend big money on home theater will not be satisfied with 720p source material or streaming. Simply stuffing an Apple TV inside a TV won't cut it. It needs to be full high-definition. Apple's entry into this market has the potential to go VERY badly for them, if they don't pay attention to these little details.
@evanwins
Apple is going to make 35" TV and everyone will LOVE it.
I think a tv would be great, something to send AirPlay to. Lot of schools that are putting tvs in classrooms to work with iPads. Lot of people that want Siri and easy of iTunes etc as multimedia center. People now do not store music or video on their tvs, whereas an Apple tv could replace the need for a stereo and a tv, plus get a lot more functionality without the complexity of setup. Right now some nerds hook their stereos up to streaming media and some might have their tv working with xbox and/or cable service. Start putting the pile of remotes on your table and good luck - probably only the person that set it up and maybe one other person in the house trusts changing any of the settings. This could make it dead simple, plus put a ton more lower power settings into the equipment, like the mac mini and current Apple TV products. You might save a ton in yearly energy costs using a single product that can play music and mute the video on the screen, use instant on without needing a vampire drain of power. Get rid of all the infrared remotes that only work when pointing directly at the sensor, put in all wifi or bluetooth etc.
@teetee1970
that operate without the need of an iPad, instead working with a much more diverse choice of hardware.

The need to replace the televisions foa na all in one unit that may not work with pre-existing hardware is a cost many schools can not afford.

Concentrating on the existing AppleTV would be a much more logical choice, as connecting a device is not a complicated matter as it was years ago.
Where did Google go wrong with their version of Google TV? Well, there are many possible and good answers to that question. And, how can Apple succeed beyond a "hobby" interest?

IMO, there are two main reasons why Google TV failed. And make no mistake about that, except in the eyes of Android fanbois, Google TV DID fail. In fact, it didn't even make "hobby" status.

The first reason Google TV failed is that the Telcoms (cable and satellite) providers didn't want to give up content control. The second reason is hardware related. Google TV required a complicated remote, a keyboard and a pointing device (mouse, trackball, game console controller, etc) for operational control. (The buggy Android software was a minor annoyance.)

Apple can easily conquer the hardware/software issues that plagued Google's initial efforts. Obviously, as Scott has pointed out, Siri is a key technology which would eliminate all the external accessory hardware controllers. No more remote. No more keyboard. No more mice.

Plus, Apple will leverage their existing iOS devices for TV control purposes. Key Telcoms have already established apps which all control by and remote streaming of content to iOS devices.

Also, I suspect Apple engineers will simply make content accessory devices like DVRs, HD disc players and the like behave as simply "plug and play" units. For example, just hook up any Blu-Ray player and it will automatically be configured to work with Apple's TV and Apple TV's menu system.

More likely, however, Apple TV will use Flash based memory for DVR capability and leverage their iCloud infrastructure (including iTunes content) to make those accessory devices obsolete.

Finally, Apple TV could and should be an actually computer. A large iMac, if you will. "Picture" this possibility. To search the internet while watching a program on Apple TV, a viewer would speak to "Apple TV Siri" about that internet related request and then Siri initiates a PIP internet screen with the requested information displayed.

Or, using a variation on that theme, an iPad or other iOS Siri enabled device networked to the Apple TV could initiate the same displayed result.

Remember that the above example would occur without a keyboard, remote or mouse action requirement, unlike Google TV's current design.

However, there are at least two hurdles to solve before these scenarios can become reality. The obvious one concerns the TV hardware itself. IMO, Samsung manufactures the best HDTV units currently. It would have been a natural synergetic result if Apple chose Samsung as it's HDTV manufacturer. With all those lawsuits going on, that may delay the introduction of this rumored new Apple product until Apple can outsource the HDTV unit from a different supplier.

And, of course, there is the price issue. Bose HDTV (a really impressive product) remains a very low sale volume item because of it's price. If Apple can pull an iPhone "hat trick", that is, bundle three key functions or components into a single device at a competitive price point, Apple TV will be a success. Big Time.

Of course, my guesses are as good as anyone else's are at this point. Grin.
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For Apple to release a TV it had better be competitive because LG is selling excellent LED Passive 3D TVs for cheap money and thinking that Apple will deliver 2 to 3x that value is just bs.

All a TV with iOS 5 would do is push more manufacturers to include Google TV with a VLingo or Speak2it (both are currently more accurate at voice recognition than Siri at the moment) installed.

And to answer your question, no we don't need another TV Manufacturer as the ones we have now build a wide range of high quality TVs and it is unlikely that Apple will rival the best TVs from these manufacturers.
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A ways off I think
oncall 27th Oct
Too ambitious. Let's face it. Apple has not made the current Apple TV device capable enough to replace all the other stuff. It can replace the DVD if you're willing to invest in iTunes movies. It can stream Netflix, BFD what can't. Until it comes with a whole lot more functionality I see no chance. As I have stated in the past an add on device or app that Apple could sell to OEMs is the way to go... For now.
@oncall

I think one of Jobs' biggest mistakes is the movement to phase out the ability to use disk media in computing devices, as he has done with the Mac Mini and the Mac Air laptop. People want to be able to play physical media in their entertainment systems. He was trying to force us to buy from the cloud by not offering any alternative, but that's not what consumers want. They burn their own CD mixes, and make their own home movies, apart from still renting DVDs from RedBox and the like, and buying them outright. Physical disks will not go the way of casettes or 8 tracks anytime soon. They will be with us at least another 10 years. Apple needs to accommodate them if they really want to control the living room
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Last piece in the jigsaw for Apple's integrated ecosystem. However being Apple it will be very expensive and you'll have to pay for features and add ons that you take for granted else where.
@Alan Smithie

You mean, being expensive just like the iPad was when it was introduced.
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www.stpipefitting.com
pipefittings 28th Oct
very good
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Accustomed to being number two, they quickly grew bloated with the brief period of success when they got lucky with iOS.

Apple's marketing department practically invented the smartphone, but now Samsung alone has easily overtaken Apple's smartphone sales figures. Apple is destined to be left behind.
@Tim Acheson
No they did not invent. There were smartphones way more capable of the iPhone before it was even a concept. What they did is reinvent the U.I of smartphone.
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Sorry, Tim...
ShazAmerica 28th Oct
@Tim Acheson

You're probably one of those people that for the last 20 years predicted Apples doom. 'Microsft will bury them!' 'A music player called an iPod, pathetic!' 'A cell phone without plastic keys? Lunacy!' 'A tablet called iPad? What a joke!'

Whereas others saw potential way back then and invested in Apple (at 5$ per share) and proved to be right.

No matter how much you wish it, Apple isn't going anywhere but up! You're going to be seeing more Apple products everywhere you look. Everywhere! Work, schools, colleges...The dark days of Windows everywhere are over for good. Thank God!

And for your information, Samsung sells a variety of phones, Apple makes one product, the iPhone, and it is the most wanted and purchased smartphone...Apple can't make enough of them.
@ShazAmerica

Samsung floods the market with phones, with the majority being crap. http://www.gsmarena.com/samsung-phones-9.php
Nothing wrong with trying different things.
If they all only did what some blogger said to do then they all would not be as big as they are.
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You have no vision
root12 28th Oct
Keep saying 'no' while the rest of us move on.
While all this is great, and Apple has made great products, and reading the comments, Apple has made the connections with most of the right players, I am wonder, what about the backbone necessary to use this product. Most home networks do not have the necessary requirements to support this, only us techie spend the extra money to have the greater bandwidth in our homes. Also will there not be an additional cost to the owner so they may stream/download all the content we watch on a daily basis? Those people offer the connection are not going to give up addtional bandwith for free.
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The Apple TV would not have to be a set. It could be control center or DVR lie device that provide the UI to any TV. Like current Apple TV but with SIRI and a nice menuing system that could run on iPhone or iPad.
I think it would be wise for Apple to simply let the Apple TV software to be used by existing equipment manufacturers.

TV hardware margins are low and I don't know if Apple could even compete with the very high end TV market.

If they simply had some certification program to put the Apple TV software in higher-end TVs (similar to what Netflix did with TVs and Blu-ray players), then they'd broaden the reach of the iTunes store and iOS devices with AirPlay, all while insulating themselves from a competitive TV market they may not do well in because of pricing pressures.
Nothing against the Tech Boiler guys, but they don't seem to 'get' how Apple works. Most engineers see things in term of features (ie slap some features on a box, sell it) where most 'normal' people (disclosure, I'm an engineer) see things in terms of something they want to do. For Apple to 'reinvent' TV will probably require a TV, because most people want to 'watch TV' they don't want 'the internet on tv', they don't want to hook another box to their tv, they don't want feature X, Y, Z... they want to watch TV. So you have to redefine what 'watch TV' means. And Apple at least knows that. That said, there are a ton of issues, some of them listed above. Bandwidth, content providers, the various sizes of TVs needed.... Not insurmountable, but pretty serious. They may be aiming too high.

But the standard techie responses (put more features on the box, open up the standard and put it on as many devices as possible, add another box and wire it up to the system) just don't work as well in consumer space as they do in the server room. Especially when trying to 're-invent' something (or invent it in the first place). There needs to be unified design, simplicity, and most of all, a narrative: here's how you can watch TV now. Apple might be able to pull it off. But more interesting to me than the question of if they will or not is how Apple's way of doing things remains so incomprehensible to so many bright technical people, and how amazed these techies continually are when they lay out a sensible, rational approach based on technically sound ideas, and then Apple does the exact opposite... and succeeds wildly. I wonder if they'll ever figure it out.
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That's not the question. We could all buy the same TV. But, this is America and we like differentiation. The question is not is it necessary, but if they can make one people really want.

The only way to find out, is to have them try.

Competition, it's powerful!
I've just purchased the AppleTV box and I subscribe to Netflix.. the purpose is two fold, first to have connected all of my in home media from cpu and idevices. second and more important is the move away from the cable provider to what we want to watch! Re: Apples Cinema Screen technology.. it's among the finest, used in most hospital, video and high-end design applications.. the Cinema screens are built by LG, we have them through out our home and cost wise can not really be beat.
I think there is the potential here that Apple needs to be (and maybe is) aiming even higher, not lower. Our information assistant (Siri) could control not just the Living Room, but the whole house. Siri could set the temperature, and warn us if the window is left open, and then with our permission, close the window, close the blinds, and adjust the ac. If an intruder comes in, or a pipe breaks, Siri alerts us, informs us of options, and with our permission, sets the next step in motion. Siri would monitor the whole house, monitor our health, monitor our investments, who knows how much more. The key is that we would need to remain in charge. If we are in command of our lives, with Siri assisting, it could be very good. If Siri, or the Govt., or crooks gained command of our lives, with Siri assisting, it would be very, very bad.
"I think the product will likely be an attractive, quality device that will look stunning and be easy to use"

LOL, so people are having a hard time operating their TV? This whole argument about making your TV "easier to use" is yet another symptom of the stupidification of the American public who can't go to the toilet these days without instructions.

HDMI is a standard now, so take peripheral X, an HDMI cable and plug it into your TV! What is so complicated about that?

The only complext piece is a satellite receiver, but even then, they offer free installation so you don't have to worry about adjusting the dish settings, etc.

Apple may be trying to create a solution to a non-existent problem.
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Keep in mind...
Qbt 29th Oct
You have to remember that this will be an Apple product, meaning the core Apple fanboys will automatically buy one, whether it offers any real advantage or not. And Apple knows this. So creating an expensive iBauble is a guaranteed high flow of income.

Remember also how all Apple fanboys are proud of the fact that they are being overcharged (high profit margin = overcharged), so an overly high price will not pose a problem in this case.
@Qbt can you prove (high profit margin = overcharged)? Most technology manufacturers including Apple run at very slim margins. "Overcharged" may mean different things to the price conscientious consumer. People who look for quality in cars are prepared to pay the price. Remember you get what you pay for. Most high end TVs are very pricey. Then you get the "el-cheapo" TVs made by some unknown chinese brand which may seem to be of the same quality to the untrained eye of the consumer.
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Meh.
Hallowed are the Ori 29th Oct
Just slap an "i" at the front of it and the Applets will act as if it's the best thing since sliced bread.
Today the modern TV is the home entertainment equivalent of the desktop monitor; a presentation piece of hardware with a sole purpose of presenting input received from another device. If Apple wants to make head way into that arena they need to ditch the TV end and go with the approach embraced by companies like Western Digital and produce a digital PVR that does a lot more. WD???s (Western Digital) own Media Center device is a universal PVR that plays an almost unlimited number of video and audio files (just like a computer) and has zero restrictions on that content, meaning no DRM (digital rights management), and that???s key to being the winner in this market.

While Apple may be able to get away with forced control over content on the iPod, iPad and iPhone they will not be able to do this in the PVR market since the competition is fierce and already generations ahead of Apple. Personally believe that this will prove to be the hurdle for Apple, getting past the ideology that the user has to get permission from Apple on what they can do with a paid for product from Apple. Had this come up just a year ago I would have said that Apple will fail in this arena because Steve Jobs is the primary obstacle for overcoming this outdated ideology. While Steve Jobs may have been ahead of his time in design he???s very much outdated in his philosophy about Apples absolute lockdown control over its devices and what you can use on them. The reality is more and more users are become computer savvy. Those who want the dumb down interface, the ???Just do it for me??? attitude towards using these devices is retiring and fading away with the generation that was raised before personal computing was a common household item.

Now that Jobs has passed on Apple just may be able to make headway with its Apple TV but only if they get past some of their outdated philosophies about user control and access and only if they approach the PVR as an independent device from the TYV used to present its content.
One could hope for a TV that just connected to cable without a so-called set-top box . Strange that most TV sets come with fine remotes and many features, that must be abandoned in favour of the cable company's clunky gear.
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abgfmal 70 dax
bmakrekwe29-24378966914875991717672619018018 24th Nov
fvsxaj,rjdztwng12, gkdcs.

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