Apple plans TV sets, Apple TV gets Hulu - analyst

Jonny Evans
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August 20, 2009
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Claims that Apple will introduce a full-fledged television set have reemerged, with Piper Jaffray analyst, Gene Munster, making the claim.

The device is expected to integrate the media functionality of the Apple TV and to be capable of performing a sync operation with iPods, iPhones and Macs.

The argument that Apple will not enter the television market because prices have declined by approximately 70 percent in the past three years is a similar argument used to conclude Apple would not enter the cell phone market, given phones had seen similar price declines," Gene Munster wrote in a memo to investors obtained by CNN.

 "The bottom line, 10 million HDTV's sold in the US a year is a real market, and if history repeats itself, Apple will find a way to compete in a commoditized market with a premium priced product.”

He speculates that the device could in theory be controlled by an iPhone or an iPod touch. “We believe Apple could differentiate itself with software that makes home entertainment simple and solves a pain point for consumers,” he alleged.

Munster also predicts Apple will upgrade the Apple TV, introducing support for services such as Hulu, and adding a TV input and DVR features, speculating Apple to be “exploring” a subscription-based offering for its iTunes TV content.

The analyst predicts Apple will sell 6.6 million Apple TV’s in 2009, up from 2.1 million last year.

Oh, and here's a nice morsel for iPhone fans.  We've been told that a Hulu app is en route for iPhone.  Maybe not at the September event, but by the new year.

Comments (10)

imat77 (not verified) | August 21, 2009 - 12:23am

Makes more sense, in my opion, to stick to the current idea of a box under your current tv set. Competing in the TV set market is something I don't see Apple doing. AppleTV, upgraded of course, would be fine as is. More scalable, less scary price, and upgradable more often. How often do people upgrade their TV set?

Marcus (not verified) | August 21, 2009 - 4:57am

I agree with above poster. Apple could also license Apple TV capability to set manufacturers like Netflix does to so many devices. Although, knowing Apple, they might rightfully not trust others to give that Apple experience. Although I must say Netflix on my blu ray player works quite well. I wish I had one box that could access everything--blu ray, netflix, hulu, itunes media, and somehow in a perfect world all the content from ninjavideo.net

Dr.Evil (not verified) | August 21, 2009 - 5:42am

When will you people learn. Apple does not license anything because that's not what makes money for them. It makes money by selling hardware. Whether it's a full blown television with integrated Apple TV or a set-top box, it's going to be a physical piece of gadgetry they'll sell not some sort of ephemeral license. Besides that, Apple would never allow another company or their product into Apple's ecosystem because that would give said company potential leverage over Apple. That's the way Apple operates and since it's makes money hand over-fist using that method and since it's probably the most successful Tech company right now, I doubt they're going to change the way they do anything.

9to5Mac Noob (not verified) | August 21, 2009 - 9:29am

"When will you people learn. Apple does not license anything because that's not what makes money for them. "

It's not true that Apple doesn't license things. How about Pippin? Huh? And what about the clones in the 90's? Huh? And what about the original QuickTake camera? What about that?

Oh, wait. I guess I just proved your point, didn't I?

Never mind.

9to5Mac Noob (not verified) | August 21, 2009 - 9:30am

"When will you people learn. Apple does not license anything because that's not what makes money for them. "

It's not true that Apple doesn't license things. How about Pippin? Huh? And what about the clones in the 90's? Huh? And what about the original QuickTake camera? What about that?

Oh, wait. I guess I just proved your point, didn't I?

Never mind.

9to5Mac Noob (not verified) | August 21, 2009 - 5:59am

I would love to see more options with my Apple TV, without having to hack it, but the problem with that is iTunes Store. The store sells a lot of the shows that I would like to watch, so it doesn't make sense for Apple to make something available for free when they sell it. I'm still wanting my Netflix to stream through ATV. Shoot, I would by an app for ATV to stream my Netfilx if they made it.
Plus, ATV is not very solid right now. I have some movies that I made in iMovie that will not play when they were playing fine a few weeks ago.

terry (not verified) | August 21, 2009 - 9:44am

Noob wrote: "The store sells a lot of the shows that I would like to watch..."

I find the movie selection less than satisfying. I may have more eclectic tastes than some, but it seems the majority of the movies i search for on ATV are either unavailable or available only for purchase.

9to5Mac Noob (not verified) | August 21, 2009 - 7:30am

Using a iPodTouch for a remote has some real advantages. The big on is instead of having PIP you use the Touch to preview the channel you want to view or monitor. That way you don't bother the better half.

9to5Mac Noob (not verified) | August 21, 2009 - 9:56am

If Apple is going to sell a TV, the video electronics and the LCD panel need to be really good. It would be a mistake for them to use some commodity parts that are not capable of producing a true quality image. I hope they hired a good video engineering team to sweat the details on video quality. TV video systems design is not the same as computer video systems design.

9to5Mac Noob (not verified) | August 21, 2009 - 9:42pm

They would be crazy not to. Capitalize on popularity and become the next american sony. Apple has the ability to create markets that all corps benefit from. They make things that exist and the other old useless corps say "oh thats how its done, hey copy that, which gives us all jobs". America first , this stupid ms vs apple goofy teen stuff 19th. Im all for it . They can revitalize a mess up media market filled with ppl who dont give a rats bum how long it takes me to read a 98 page manual. Nock some sence into um apple more power to you.

and they will do it right.