With only a few exceptions (remember the Lisa?), Apple Inc. (Nasdaq: AAPL)'s product development strategy has been "If we build it, they will come." The most recent example is the new iPad, which had iFans once again camping out in front of Apple retail stores. The scene has become so familiar that Samsung Corp. spoofs it in a commercial for its Galaxy Note, and the media covers the queuing up as a news event.
Now, Apple's largest manufacturing partner, Foxconn Electronics Inc. , has let it slip that Apple will soon be building an Apple TV. It's no surprise that this is happening: Foxconn's recent investment in Sharp Electronics Corp. 's display business had "Apple TV" written all over it. What is surprising is a seasoned executive such as Foxconn chief Terry Gou letting a customer's product strategy slip, but that's a discussion for another day.
Apple's offering in the TV business to date has been a sort of set-top box that allows users to access the Internet. Apple has all the necessary resources to get into the TV business, including a patented display technology. Why Apple hasn't made that move yet is supposedly due to former CEO Steve Jobs's desire to develop a user-friendly TV set that syncs with other household devices. Shortly before his death last year, Jobs told biographer Walter Issacson that he had "cracked the code" to integrated TV.
Experience has taught prognosticators that external market conditions have very little to do with Apple's product-development strategy. The TV market has been in the doldrums for awhile, due in large part to market saturation. LCD screen prices have steadily dropped; large-screen manufacturing barriers have been breached; and HDTV prices have hit the "very affordable" range. Efforts to reboot the TV market with offerings such as 3D haven't gained traction. HDTV technology and product offerings have reached the point where incremental improvements are not enough: Users are pretty happy with what they have.
So what is it going to take to get consumers to buy yet another TV? Reports from CNET and other outlets have suggested that Apple will integrate the SIRI voice recognition system on its TVs. The cloud has also enabled a level of functionality not available before, so downloading content across multiple devices is easier and less expensive. Other suggestions include a built-in camera and access to the App store.
The downside is that the iTV will no doubt carry a premium pricetag. iPads and iPhones are among the most-expensive items in the consumer electronics industry, and Apple's discounts on last-generation products aren't what you'd call "steep." Rumors that the global economy is turning around seem exaggerated, at least for Europe and some regions in Asia/Pacific. If Apple releases the iTV this year, as some suggest, the "Apple Effect" could go the way of the Titanic. If Apple waits until 2014, another rumored target date, the iTV could re-set the standard for television.
What do you think? For my part, if SIRI can replace remote controls, I'm willing to test drive the iTV.
@Mr Roques Yes, they have plenty of those. I'm not an Apple fan -- not because I dislike their products but because I just don't end up using them. We're strictly PC here for practical reasons, and I keep my cell phone simple. But really I don't have a great deal of brand loyalty in general.
I love getting involved in this field - technology! Am wondering how this would turn out to be in the world market, Samsung Smart TV and iTV. And we should not expect only those 2 giants in this. Meanwhile, there are too much money to be made in this world. My worry now is about the companies still trading in obsolete technologies - analogue stuffs, some ultra high power consuming devices and etc.
Taking a look at below posts a cross-connect grid raised in my mind; as of today, we are living managing tough agenda, day-by-day; TV, in general, requires to pay attention a free time, it is completly different respect to socials or other interaction. As consequence, will it still have market? It doesn't matter the device.
I saw recent advertisement of "Samsung Smart TVs" which seems to have a next generation TV.
@Himanshugupta, I have seen the ad too. I liked all the features especially the gesture recognition and face detection features. I am not sure about the price though. Only thing that I feel missing is feautres like "SIRI" which Apple is promising in its iTV.
I've been hoping for Apple to jump into other devices (not because I'll buy one but I will wait for the competition's cheaper device).
The "iTV" definitely will make things interesting as it will compete with Samsung's Smart TV (or Google's TV). I think its a great way to, without much innovation, create a whole new product.
Maybe they should come in partnership with cable providers, similar to iPhones and mobile carriers, who subsidize the equipment in exchange of a 18month contract.
@Bolaji: yeah, we all know that some leaks aren't really leaks. The timing was curious, though: it happened around the same time Joe Biden "leaked" that Obama is pro-gay-marriage. So we have info about two powerful entities (Apple and Obama) that the entities aren't directly responsible for. I am wondering if plausible deniability isn't in play here...
Rwave: And they say vertical integration is dead. Pox upon them (whoever "they" are)!
I missed the item on Foxconn/Cisco; still catching up from traveling last week. I can't help but compare Foxconn to Star Trek's Borg: "We will assimilate you..."
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
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Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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