Monday, September 29, 2014

Why Apple TV is a BAD idea also supports the idea of PicoP

Read the article. With PicoP, Apple could truly revolutionize television.

http://seekingalpha.com/article/2528355-why-an-apple-tv-set-is-still-a-bad-idea

Summary

  • Hardware margins are terrible for TV vendors. Except for Samsung, almost everybody is losing money. Consumers can't tell the quality difference for modern TV hardware. Price wars are common.
  • The living room space is very crowded. I predicted in the past that it will be more worthwhile for Apple to launch new products in wearables rather than TV.
  • TV sets are a commodity and only exchanged when they break down; longevity adds to margin problems. Acquiring exclusive content is very expensive and balkanized as the Netflix example demonstrates.
  • Since the real differentiation is in software and user interaction (Primesense acquisition), Apple can likely achieve better results with an updated Apple TV box instead of producing giant TV sets.

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