Register

I agree with the Privacy Policy

In The News

Why I'm Glad Apple Inc. Killed Its Smart TV Plans

May 19, 2015

There's simply no reason for Apple to jump into the crowded low-margin battlefield of smart TVs when it can sell its hardware at gross margins exceeding 40%. Steve Jobs reportedly once told employees, "TV is a terrible business. They don't turn over and the margins suck."

Perhaps Icahn will argue that Apple's brand appeal could convince people to buy $1,500 4K TVs. But in my opinion, TVs don't belong in the same category as smartphones or tablets. Plunging prices across the market indicate that customers favor big screens with low price tags, and the upgrade cycle for TVs is much longer than the one for smartphones and tablets.

In addition, Apple already has a decent foothold in the connected TV market with Apple TV, which accounted for 17% of all streaming media devices in the U.S. last year, according to Parks Associates. That makes it a decent platform for delivering iTunes, its upcoming streaming TV service, and other digital content to customers.

From the article "Why I'm Glad Apple Inc. Killed Its Smart TV Plans" by Leo Sun.

Previously In The News

Uber aims to be uber-funded by expanding funding round by $1B

Venture capitalists' recent investments in Uber "underscore the confidence investors have in Uber's growth," an Uber spokeswoman said. She said additional funding will be geared toward its car-pool...

Uber homes in on safety initiatives amid concerns

While Uber is forging ahead with its initiatives, tangible safety improvements may take time, said Parks Associates research analyst Tejas Mehta. "Uber's new safety initiatives are an acknowled...

Amazon and GameFly get their streaming game on

For Amazon, the introduction of the exclusive service could help it gain more attention in the crowded market of streaming-media players, where it remains a second-tier player. Rival Roku is the le...

As iPhone 6S launches, a new Apple TV and iPad Pro steal the show

But the market has radically changed since the arrival of the previous Apple TV box, the all-time leader with 25 million units sold over its lifetime. Roku (10 million units sold as of last year) i...

‹
1
2
...
5
6
7
8
9
10
11
...
46
47
›