Apple Inc. (NASDAQ:AAPL) is concerned with more than just technology and smartphones. They are also concerned for the ecosystem, according to Barclay’s PLC equity research. That’s why they’re currently in talks with cable providers. While many people are hoping that the world’s most valuable company will launch their first television set, it’s more likely that they will create a software-driven ecosystem that’s linked to iTunes.
It’s speculated that this ecosystem could be more like a digital hub that allows users to connect their iPad and use it to complete computing tasks. If they decide to go with the rumored box-top approach, it’s highly unlikely they will be able to work with big cable companies who would see them as a huge competitor, especially considering they’re losing many subscribers.
It’s also predicted that Apple’s iTV will allow users to also connect iPhones and Macs into the iTunes software.
Apple Inc. (NASDAQ:AAPL) has yet to confirm whether or not they’re working on Apple TV or something similar but it does sound like that something real may be in the works.
I think Apple Inc. (NASDAQ:AAPL)’s potential entry in the television market would be a smart move. They have already conquered the mobile market with their smartphones and tablet computers; they also pretty much own a sizable portion of the digital entertainment market. It only makes sense that they would want to expand their empire and tap into a market that could use a little competition.
Right now, the internet television market is dominated by devices like Roku, Boxee, and popular game consoles like Xbox or Wii. While these devices are great as they let you view tv shows, rent movies, play games, and listen to music, Apple could take it one step further by turning the tv into a computer monitor replacement. People could easily plug in their iPads and use them as keyboards.
Barclay’s has some interesting comments in regards to the iPhone and emerging markets, stating:
We believe investors are willing to look through near-term weakness in Macs, iPhones and even the new iPad for the upside in the holiday quarter. Also, given the potential for iPhone internationally, we believe that momentum could extend in the March and June quarters as well. The risks for Apple still seem to reside in its ability to ramp production and expand with cheaper iPhones into emerging markets, where competition at the low-end is heating up. Also, in Asia in particular it seems that bigger smart phone screens are catching on –which could mean Apple needs to eventually broaden out its iPhone line-up to include other screen sizes. For now, we expect yet another strong product cycle, led by the iPhone. However, we are watching carefully how Apple intends to expand the iPad category to over 300 million units long-term (comparable to the size of the PC market).
Below is Barclay’s model for iPhones, iPads, iPods and Macs.
