Apple Inc. (NASDAQ:AAPL)’s iTV reportedly has been put on hold again. According to supply chain sources for DisplaySearch, Apple Inc. (NASDAQ:AAPL) won’t be releasing their rumored television set next year. Instead, the company plans to keep their focus on wearable devices such as the purported iWatch. The potential problem with the iTV is the content offerings.
Apple’s iTV product differentiation
DisplaySearch explained, “To offer truly unique product differentiation that would allow Apple Inc. (NASDAQ:AAPL) to capture market share from existing smart TV brands, they would need to either deliver some exclusive source of content that the other brands cannot, such as a la carte pay-TV channels, or proprietary content not available on other devices. Neither of these is easy to achieve, and our sources indicate this is one of the principle reasons for the delay in the project.”
The current market for television is changing fast. People no longer just tune in to television to watch shows. They use the internet (namely paid service websites like Netflix, Hulu, and Amazon Prime) to satisfy their television show needs. Although cable and satellite television companies still dominate the market in terms of subscribers, more users are ditching paid television in favor of cheaper options.
Apple’s relationship with cable companies
Reports indicate Apple Inc. (NASDAQ:AAPL) got tired of trying to deal with the cable companies. Instead, the company is trying to talk directly to the content providers in hopes of bringing a la carte shows to Apple television.
Display Search Blog named three goals the Cupertino-based tech giant needs if they want a successful television set. The company will need to sell enough units to generate enough content purchasing points. The tech company will also to need offer something unique to take that market share from current television manufacturers. Last, but certainly not least, Apple Inc. (NASDAQ:AAPL) would have to follow up on replacement purchases to prevent hardware sales from ending once every house owns an Apple television.