Ambitious Apple turns to TV
After a shaky start to the iPhone earlier this summer, the news surrounding Apple has shifted to its upcoming television plans. First up is the Apple TV set-top box, a 99 device that is scheduled to come out before the end of September. It will serve as a replacement to the older Apple TV which was released more than three years ago and allowed viewers to access iTunes media on their television. One of the complaints with the original was that it didn’t support Netflixa complaint which will be remedied in the new model.What else does the new product include? Built-in Wi-Fi on one hand, and 0.99 rentals of ABC and Fox television shows for when you miss that important episode. Movies will now be rental-only as well, and will be priced more cheaply accordingly.On September 20, Apple showed another glimpse of its future plans when it partnered with Rovi, the company that provides the technology for on-screen television guides and DVR. Analysts expect that Apple will incorporate these features into Apple TV. However, the lack of local storage on the Apple TV product would make DVR functionality difficult.That’s why some analysts are saying this announcement heralds the development of an actual “Apple TV”a self-contained set that includes all sorts of Apple functionality and features. The analysts for Piper Jaffray & Co. (a Minneapolis-based investment banking firm) have been most vocal, releasing a note which says that such a device could be released by 2012. That’s when they expect Apple to feel comfortable with their TV products customer base. Piper Jaffray expects the Apple TV to reach over 1.5 million consumers during the first year of sales.In contrast, the iPhone 4 sold 2.5 million units in its first two months. While there is obviously a discrepancy in these expectations, application-based television is still a new idea and could take time to catch on with consumers.