Apple television set by 2011?

Thursday, August 20, 2009 at 02:50 PM | Posted by kazouz

In a note to clients, Piper Jaffray analyst Gene Munster comments on possibility of Apple entering the television set market by 2011.

The Apple television would include digital video recording and built-in functions for music, movies, games, interactive TV.

“Yes, TV hardware is a challenging business if you don’t change the rules of the game,” Munster writes, “but we see potential for Apple to offer best-in-class software and hardware and charge a premium.”

Munster believes that Apple would start by launching a new Apple TV set-top box within the next few months with a built-in DVR and subscription-based content via iTunes in order to be better placed in the market.

An iTunes TV Pass could also be on the cards according to the analyst:

“Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee ($30 to $40 per month). Such a product would effectively replace a consumer’s monthly cable bill (~$85/month) and offer access to current and older episodes of select shows on select channels.”

Later on, the company would launch an Apple television that would wirelessly sync with Apple products as the Apple TV presently does. Munster writes: “Such a device would command a premium among a competitive field of budget TVs; we believe Apple could differentiate itself with software that makes home entertainment simple and solves a pain point for consumers (complicated TV and component systems).”

As evidence for Apple’s plans, Munster cites Apple COO Tim Cook’s statement that the company will continue to invest in Apple TV because “we fundamentally believe there is something there for us in the future,” Apple’s $500 million deal with LG to manufacture LCD screens and the company’s recent digital video recording patents.