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Why Apple Ditched Its Plan To Build a Television

Apple has been rumored to be developing their own line of HDTVs for years, but a new report from the Wall Street Journal (paywalled) says while those plans did exist, they've been abandoned. Apple began pondering the idea of jumping into the television market roughly a decade ago, as iTunes started hosting video content. The AppleTV made a foray into living rooms in 2007, and other devices reached the prototype stage. The company continued to do research and work on their ideas, but eventually gave up more than a year ago. Apple had searched for breakthrough features to justify building an Apple-branded television set, those people said. In addition to an ultra-high-definition display, Apple considered adding sensor-equipped cameras so viewers could make video calls through the set, they said. Ultimately, though, Apple executives didn't consider any of those features compelling enough to enter the highly competitive television market, led by Samsung Electronics Co. Apple typically likes to enter a new product area with innovative technology and easier-to-use software.

12 of 244 comments (clear)

  1. Why did they ditch the TV? by nbvb · · Score: 5, Insightful

    Because they have half a clue ...

    Apple doesn't enter a market unless they see the ability to innovate and change it. They aren't always first movers, but they DO bring innovation and of course profits to any segment they enter.

    The magic is in saying "NO" to doing things that don't make sense... entering a crowded, unimaginative, razor-thin margin, mature TV market doesn't make sense for Apple. That's why they said no.... No more, no less.

    1. Re:Why did they ditch the TV? by dj245 · · Score: 5, Insightful

      Because they have half a clue ...

      Apple doesn't enter a market unless they see the ability to innovate and change it. They aren't always first movers, but they DO bring innovation and of course profits to any segment they enter.

      The magic is in saying "NO" to doing things that don't make sense... entering a crowded, unimaginative, razor-thin margin, mature TV market doesn't make sense for Apple. That's why they said no.... No more, no less.

      My company declines jobs and new markets all the time. We run some quick numbers and make a decision on whether it makes sense to take on X risk for Y% margin. Nobody calls us "magic".

      Apple doesn't enter a market unless they see the potential to charge $1 for a lime that everyone else is selling for 50 cents.

      --
      Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
    2. Re:Why did they ditch the TV? by rabtech · · Score: 4, Insightful

      Apple doesn't enter a market unless they see the potential to charge $1 for a lime that everyone else is selling for 50 cents

      Apple's flagship phones sell for about the same as Samsung's. Apple's computers sell for similar prices to PC systems of similar specs.

      What Apple doesn't do is sell garbage systems to chase the cheap end of the market. No one complains that BMW won't sell a $10,000 car.

      People whine and moan about all the crapware that comes bundled with the latest Dell PC, but that's how they manage to make a profit. Apple just charges a reasonable price for the system instead. It also means Apple has the money to fund R&D and invest in manufacturing technology. When was the last time any of the PC makers innovated on anything?

      --
      Natural != (nontoxic || beneficial)
  2. Re:Compelling? by halivar · · Score: 3, Insightful

    The smart watch market is really nascent, Pebble notwithstanding, while the TV market is saturated and cut-throat. A low barrier of entry makes the watch market, while niche, possibly more profitable than trying to crack into they hyper-competitive TV market.

  3. Re:Compelling? by Guspaz · · Score: 4, Insightful

    But they couldn't have differentiated themselves. The television market is highly competitive, with intense pressure driving manufacturers to minimum margins. For Apple to justify a price premium, they would have needed some sort of compelling features to differentiate it from every other television, and it seems that they weren't confident that they could do that.

    Many of the things that differentiate them with other products (excellent build quality/fit and finish and the benefits of their vertical integration) don't really apply to a TV. You don't tend to notice build quality on something like a TV that you never really handle directly, and there isn't a huge amount to be gained in terms of vertical integration with a television versus connecting an external device by HDMI.

  4. Re:and it would only work with other apple product by Austerity+Empowers · · Score: 5, Insightful

    You realize you just said "You can microsoft on your microsoft with anyone who has microsoft" in defense to Apple apple-ing only with Apple

  5. Re:and it would only work with other apple product by Ravaldy · · Score: 3, Insightful

    Skype is available on all platforms last I checked. Maybe that's what he meant by Skype.

  6. Re:Make it more expensive ? by antiperimetaparalogo · · Score: 3, Insightful

    They could have added $1000 to the price. That's always a popular Apple feature.

    You have been modded as "Troll"; but "making it more expensive" is a usual "(marketing) feature" for some brands (i don't dare to mention Apple because... my "/." karma is suffering righ now!).

    --
    Antisthenes: "Wisdom begins by examining the words/names." - excuse my English, i am (slightly...) better with my Greek!
  7. Re:Compelling? by schlachter · · Score: 3, Insightful

    Also their ecosystem is very important to their success, and it would be much harder to rapidly grow an ecosystem with $1K+ TVs that are replaced every 10 yrs rather than a $100 smart box that can be added to each TV in the house and replaced at minimum cost as needed.

    --
    My God can beat up your God. Just kidding...don't take offense. I know there's no God.
  8. All they really need as a compelling feature is... by Anonymous Coward · · Score: 5, Insightful

    a smart TV with a responsive UI that isn't a nightmare to navigate and actually gets updates after you buy it.

    Although at this point, all I want from a TV anymore is a display with a bunch of inputs, no speakers, no network connectivity, no tuner and no smart features. I haven't used the audio, tuner or smart features on my current Panasonic Viera in years, all it does is display whatever source is selected on the receiver, all the rest of those "features" were a waste of money.

  9. It's simple really... by erp_consultant · · Score: 1, Insightful

    TV's are basically a commodity item. Thin margins, race to the bottom, etc. Watches, although many of them are very cheap, can be a high end luxury item.

    I don't see Apply trying to compete with Casio in the $10 watch market. But I do see them competing with Rolex, Omega, Tag Heuer, Breitling, etc. in the very high end watch market. The profit margin in this market is quite high. You can also control the price, unlike the TV market.

    The other thing about watches is that people that are into watches (like me) collect them. So even if you already have a nice watch or two you can always add the Apple watch if it has something you desire.

  10. Re:Compelling? by Anonymous Coward · · Score: 2, Insightful

    Thats a horrible idea - those cars would get vendor locked to apple.

    What needs to happen is for these systems to be modular. Screen separate from CPU, and a universal standard for things like steering wheel controls. Allow me to swap out my CPU/Software, and have it use a standard communication method for the integrated controls. Right now the only replacement options are ugly ass after market conversion things that don't work right with the integrated stuff. Example: In my car, I can replace the head unit, and the volume and stuff will work on the steering wheel, but the bluetooth hands free controls are on a separate system so they cant connect to the head unit.