During yesterday’s Q3 earnings call Apple CEO Tim Cook announced that the company sold 1.3M Apple TVs in Q3 2012, up more than 170% year over year, that totals at 4M units so far this fiscal year and 6.8M since Apple began selling the iOS-based, $99 model (Apple TV 2 and Apple TV 3). Tim Cook called these numbers “pretty incredible.”

Cook also said that “Apple TV is still at a level that we would call a >>hobby<<” but he admitted that the company continue to pull the string to see where it takes them. “There is a lot of people here that believe in Apple TV. We do it because we think it’ll lead us somewhere,” he added.

Where? Apple has been long rumored to be working on an Apple TV set, which, according to the latest rumors, could be released in 2014.

Back in May China Business News reported that Foxconn, Apple’s Chinese manufacturing partner, has already started a pilot production of the new Apple HDTV:

Insider sources told China Business News that a Foxconn factory in Shenzhen has received orders for an Apple “smart TV” and is producing them on a trial basis.

Other rumors claim that Sharp is set to begin delivering LCD TV panels to assembler Foxconn in order to begin building Apple television sets.

According to the experts at Stuff, when Apple HDTV does finally hit the market, it may start as a US-only release, because of the content rights.

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The industry has been buzzing for months now about the hotly-anticipated Apple TV set. But according to the experts at Stuff, when it does finally hit the market, it may start as a US-only release. Apple surely doesn’t want to leave its international fans in the lurch, but with the massive work involved in content rights, it could simply be a necessary step before a wider release.

Any internet-based television service, even the big boys like Netflix and Hulu, have struggled with blackouts and the huge price tag content distributors are demanding for their top rated shows. All rights are negotiated through a different agreement and separate contract for each country, so launching such a significant product in a timely fashion could mean a slower roll-out. Apple television needs to offer great content to be successful, so it simply doesn’t make sense for them to push into additional markets until they have that content in play.

Video streamers in the UK have enjoyed content through iTunes for quite a while now, even with the limited content available, and the strength of the Apple brand should lead content distributors to accept a deal rather quickly. But the real question is what Apple will have to spend to strike those deals. Apple TV is sold internationally, but does the bulk of its business in the US. Seeing that their content platforms aren’t performing as well outside of the States may discourage Apple from spending big on marketing and content before they see a real demand for it.

As of now, Americans won’t have access to Apple television until at least it’s rumored 2014 launch, which means international fans may have to wait much longer.

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[image: Stuff]

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We all know that Apple’s HDTV is set to revolutionize the TV industry, but what about the content industry? Would the idea of an Apple TV set with Siri, FaceTime, and Airplay, an iSight Camera, along with the look and feel of an Apple product not be enough for you to want to buy one? I would say yes, as would a few others, I assume. I found myself arguing with a friend about the idea that Apple could not release anything until it got its content partnerships worked out. I, personally, could not disagree more. I would think Apple would be prone to releasing a fantastic television set that revolutionizes the TV hardware/software industry and not even worry about the content right away.

Like everything else they do, they could simply release a product and let the market evolve around them. Let the products popularity drive content agreements, not wait for the market to move first and then release the product! Remember, they can always allow a coax cable to run into the back and immediately have all the content most people are use to.

Well, needless to say, my friend called me crazy. Thankfully, not 24 hours later an article came across my desk regarding Apple analyst Gene Munster of Piper Jaffary via the great folks over at Business Insider. It would appear that Munster, who has some knowledge in this field, says it is a simple question of “when”, not “if” this product will be released:

While many believe content will be the key differentiator for the Apple television, we expect at launch Apple may not necessarily revolutionize the content industry. Ultimately we believe that consumers and Apple want unbundled channels and more options including time shifting to watch content, but note that content owners are hesitant to change. Our take is consumers are willing to pay more for each channel as long as their overall bill goes down (i.e. pay more for fewer channels you actually want). The bottom line is that we believe in five years Apple will have a significant hand in changing how people consume content on their TV. We know the end point, unbundled channels and DVR in the cloud. However this will take time (3-5 years.), and while we believe Apple will innovate on its existing TV content offering at the launch of Apple Television, we caution that the initial offering may more closely resemble the current Apple TV content offering (Netflix, iTunes, and eventually Hulu). As mentioned, we expect at launch the interface will allow users a new way to search, interact and record cable content, which will likely give users the feeling of an improved content offering.

Gene Munster goes on to break down what he thinks Apple will do to make this product special:

“Interface. We expect the TV to include Siri and compatibility with third party devices as well as potential integration with content guides, offering consumers improved control which should lead to greater value from their monthly cable subscription. We note that cable companies could charge a fee for consumers to use Apple Televisions ($5-10/month similar to cable box rental fees). Some investors do not believe Apple will be able to gain control of cable interfaces due to advertising on the interface, but we note that the ads are typically house ads and are not significant revenue contributors.

Apps/Games. We expect Apple to ultimately enable the App Store so consumers can play games, listen to music, etc. on their Apple Television set. We believe gaming will be of particular interest given the large base of iOS game developers. We believe games could be controlled by voice, iPhone/iPad and eventually motion capture built into the display,

Design. We believe the Apple television will include many existing Apple styling cues including aluminum casing and reduction of wires. We expect the design of the TV to make it the stand-out center piece of the consumer’s living room. We expect the TV to be LCD given the high cost of OLED panels.

Finally, our friendly analyst gives his take on the specs (sizes and prices) we should expect to see when the Apple HDTV finally arrives:

We believe an Apple television could cost between $1500-2000 and is likely to be available in larger screen sizes (42-55″). The reason we are comfortable with that range is based on our thoughts of what an average Internet connected TV set up consists of (50″ Internet connected HDTV, game system, Blu Ray player, cable box, universal remote). We believe a set-up as outlined would cost around $1,650 (TV $1,200, game system $200, Blu Ray $150, universal remote $100). We note that the iPhone  typically carries about a 20% premium to other high- end smartphones, thus a 20% premium to the $1,650 set-up above would suggest a ~$2,000 TV.

So, when will we see this Apple TV set? According to Gene Munster we should expect the release to come somewhere around the first half of 2013.

Be sure to follow us on Facebook, Twitter or Google+ for the latest updates on the rumored Apple TV set.

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According to Globe and Mail, Canada’s largest telecommunications companies – Rogers and Bell – are in talks with Apple to become Canadian launch partners for its Apple iTV. “They’re not closed to doing it with one [company] or doing it with two,” said one source who is familiar with the talks. “They’re looking for a partner. They’re looking for someone with wireless and broadband capabilities,” reports Globe and Mail.

More interestingly, another source said Rogers and Bell already have the product in their labs.

[via The Glob and Mail; image by Guilherme M. Schasiepen]

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