Why Doesn't Apple Build A TV?

Why doesn't Apple build a TV, even a "smart" TV?

Because the industry is too competitive, and that makes the margins too thin. Better to make an add-on to someone else's TV.

That's the same reason that Apple stopped selling Apple branded printers and digital cameras.

Arik, I thought about this, too. The problem: TVs are such a crappy, low-margin business, that Apple would have to charge a fortune to make any money.

@DanFrommer: You're right, TVs are a low margin business. But so are PCs. Apple has always sold its computers at a premium when compared to the commodity machines from Dell et al, and now all the other vendors are learning from Apple, and among other things, segmenting their own markets. Apple has a long history of selling products at a price that's higher than that of their competitors, and can, as usual, make the case via its usual marketing magic.

I agree completely -- Apple should be selling 1080P LCDs or a 40" iMac model.
One reason to do it is that the largest "consumer" displays Apple sells are the 24" iMac and 23" Apple Cinema Display (the 30" ACD needs a MacPro or MacBookPro to drive it, making it prohibitive for entertainment purposes).

Ideally Apple would release a upgraded Mac Mini which would all the capabilities of the current AppleTV, with all the Mac OS X third party software support. Under Mac OS X problems like DVR capability are already solved by third party products.

The problem is that hooking up the current Mac Mini to third party TVs is a difficult and problem prone process. Apple either needs to release its own brand or enter into an agreement with a third party to provide 100% plug and play Mac support.

Apple does sell TVs. Apple will start calling them TVs when the time is right. Apple has historically been a company that is more concerned with the quality and the functioning of its products than their success in the marketplace. In these days of marketing and positioning where a product can be the most widely used but not the best in its class(think WIndows) simply because of the way it is marketed and the use of exclusive distribution agreements, Apple still believes that in order to be a superior company you must deliver a superior product. The AppleTV is a way for Apple to dip its toe in the market but it has nothing to do with sales. The websites are up, the hackers are at it and Apple has a new platform being tested in the real world, being picked apart by the community and documented on the web. Just as the iPhone was released without 3rd party apps as Steve Jobs sang “It’s not secure enough. The web is perfect for applications” and the app store was planned all along, the slow build of the AppleTV and Apple’s TV is planned. Apple is well aware that hackers will attempt to make the product do what they want it to do so they release a first version that is far from complete, easy to hack into and a good start. The software for both the AppleTV and the iPhone/iTouch is designed to allow 3rd party plugins and I am confident that the AppleTV will have an app store in less than 18 months. It has already been created by the hackers just as the app store on the iphone was already available to people that made a special modification to their iPhone. Once the studios have finished fooling around with how they want to be paid for this stuff and the consumer has decided how it wants to consume television, Apple will take all the stuff it learned from the hackers, supply an SDK and open up the AppleTV and launch its associated app store. Once we all understand the way televisions will be used for the next 10 years, the generation of iMacs that coincide will be called TVs.

I'd like to see a 40" lcd with iphone-like design (and similar thickness). It would run OSX, with a 1TB hard drive for DVR functionality. WiFi, Bluetooth for a wireless keyboard (and GAMING controllers). Also, if they really want to charge $4,000 for this thing ... multitouch.

Apple is about the user experience, and with the Cable TV industry apple would be unable to get them to agree on standards. They have proprietary monopolies and unwilling to give up their monopoly control. I have no doubt that Apple could bring the best experience to our TV's but without open competition in the Market and government sponsored monopolies it make no sense for Apple. AppleTV is what it is because of the Cable companies, A well controlled environment only from Apple

Agree with the comments about the "crappy" nature of TV business.

As many Mac users know and experience, Apple has left this whole DVR Thing to its developer Elgato.

Both the Elgato Software/Content and Hardware perform excellently and the incremental expense for any Mac is minimal. Third party tuner makers also license the Elgato Software. The software solution covers the Globe and the low cost tuner hardware can cope with almost anything out there.

In Europe I am able to schedule, record and edit content and re-use this with excellent (quality) results and HD content is becoming available over the Digital Terrestrial TV Systems implemented in most countries. A silly little antenna will pick up the signal 100%.

I can also watch the recorded content on HDTV or iPod/iPhone.

So why is the TV thing not happening mainstream?

1. Steve Jobs like many of us does not appear to give much time to TV and he does not want to do anything to rock the Copyright Boat.

2. iTunes provides a low price alternative where all of the grunt work has been done and copyright holders are satisfied.

3. The existing TV set business is "crappy" as stated by your readers. More importantly it is difficult (for me or anyone else) to conceive of a solution that would be earth shattering.

4. The cable companies and now broadcasters (BBC iPlayer) provide good catch up services

"and several of its rivals are coming out with network-connected TVs this year."...when you think about it beyond the classical CE connectivity what is the difference between connected TVs and a DIGITAL HOME with networked TV tuner, networked internet connection, VOD (and all media) services and central storage (cloud and local) ?
NONE - IF the home networking technology can handle realtime digital TV bandwidth. In such scenario Apple is just a "tiny" step away from capturing the TV (and VOD ...and music...and later all DIGITAL HOME) business without the dedicated classical TV box...but with an Apple chip family that takes care of the high speed connections. Such move would fit better with Apples culture of innovation than a "me-too" connected TV box.

Rolf Bork, BOD mediaf.com & sensitivetech.com

...because just about everybody is racking their brains out trying to come up with a way that they can control content to your "space" and derive a great deal of profit doing so! there are a lot of very good LCD brands in a competative market. Apple seeks a niche where it can deliver a unique and superior product at a good profit! Jobs and co. are masters at their craft.

Television is the past. Broadcasting is giving way to narrowcasting. Just look at how young people absorb media today; television is low on the priority list. Apple would rather create new markets than attempt to enter mature ones, and I can't find fault in that.

Plus just look at the insanity surrounding the HD rollout in the US. It's a goat rodeo. I think Apple is smart to let other players bear the brunt of consumer confusion and annoyance.

Arik, I'm wary of Apple getting into too many businesses; that's a good way to lose focus. I would much rather Apple concentrate on the iPhone which - with the Apps Store - is going to be hotter than a poker in a fire! Plus, I keep reading that the Internet is going mobile. Let Apple funnel all their brilliance into that market, and watch what happens.

Building a TV would be Apple's jump the shark moment. What I'm still waiting for is 1080p movies, and live sports events.

My opinion is that Apple will build a TV except it will be display screens capable of high resolution video and it will be two networked and interactive screen devices. Correlactive content on two screens will be much more interesting than TV.

I agree...but the solution is closer to reality than you think: It's the iMac. They just need to incorporate the AppleTV stuff, DVR, etc...in a larger screen form factor, embedding this additional hardware into the chassis would not be implausible.

But they could offer the same functions in a non-screen version for those of us who have already invested in large screens. They win both ways!

As NuanceTech is alluding to above Apple will build a solution rather than get caught in the same trap as the rest of the television manufactures. The parts are in place and fust need to be refined. When all is said and done you will sit in front of your large Apple television and control it first with a an itouch/iPhone or even a cheap capacitive touch screen remote that comes with the TV and as soon as technology allows, the TV will read hand gestures sensed by cameras in the screen. Apple has already patented this technology and as big brother as it may sound the monitor has a camera built into it-- basically behind it.

Apple tried building a "TV"... I still own one

http://en.wikipedia.org/wiki/Macintosh_TV

http://support.apple.com/kb/SP217