Less than a week after a report leaked that Google is deeply involved in creating a TV service, a prominent Apple analyst now says Apple could revamp the HDTV market in the next two to four years.
Piper Jaffray analyst Gene Munster told investors Tuesday Apple is “uniquely positioned” to enter the HDTV market with what he calls a “premium all-in-one” alternative to the high-definition sector. Munster believes Apple could sell a product for $1,999 that would replace the HDTV, the Blu-ray player, your digital video recorder, cable box and game console.
“As connected TVs gain traction, software, content and portability will become the key differentiators and Apple is uniquely positioned to deliver a premium all-in-one solution” that is different than Apple TV, the analyst said. The Apple HDTV would use a subscription iTunes service costing between $50 and $90 to replace cable.
Apple would leverage its brand along with the 125 million U.S. iTunes accounts to insert itself into the HDTV market, Munster added. The home entertainment market is worth $31.8 billion in the U.S. with HDTV shipments up 268 percent over the past decade. However, the average price for an HDTV has been cut in half and market revenue is expected to shrink in 2010.
Munster said Apple’s entry into the market would “change the rules of the game.” Apple has revolutionized other mature markets, most notably music with the iPod’s introduction. Although talk of Apple getting into the TV business is nothing new, the analyst believes there is more reasons for such a move now.
Both the introduction of new iMacs with 27-inch screens, coupled with Apple’s success with the App Store and the Cupertino, Calif. company’s desire to be a player in portable gaming points to toward the logic of a move into HDTV.
“An all-in-one TV could be a logical next step for the company to expand its reach further into the gaming market with limited risk using an existing infrastructure,” Munster said.
Earlier this month, the New York Times reported a GoogleTV could appear this summer powered by Intel’s Atom chip and the Mountain View, Calif. Internet giant’s Chrome Web browser. Already, limited testing with satellite provider Dish Network is reportedly underway.
[via AppleInsider]
