WSJ: Apple Shelved Plans to Make TV Set

Daisuke Wakabayashi, reporting for the WSJ:

Investor Carl Icahn said he expects Apple Inc. to introduce an ultra-high-definition television in 2016. But after nearly a decade of research, Apple quietly shelved plans to make such a set more than a year ago, according to people familiar with the matter.

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.

The most surprising thing about this, if true — and with Wakabayashi and “people familiar with the matter”, that’s a big if — is that Apple was still pondering their own TV sets as recently as a year or two ago.

Making boxes that connect to TVs — like Apple TV as it stands today — that makes sense to me. Making actual TV sets, though, I’ve long been skeptical about. Years ago, I thought, “Why should Apple settle for selling a $100 box connected to a $2000 TV instead of just selling the $2000 TV set with the box built in?” The problem, though, is that TV set prices have dropped dramatically, and people don’t replace their TV sets that frequently. The only way to build a large TV-based platform is to make boxes that connect to the TV sets people already own. There has to be a standalone Apple TV box. In theory, Apple could make an actual TV set, too, but I’m unconvinced that makes strategic sense.

★ Tuesday, 19 May 2015