Greg's Bite: No Margin, No Apple TV Set
TweetFollow Us on Twitter

Greg's Bite: No Margin, No Apple TV Set

Posted by Greg Mills

Those who predict Apple products tend to be wrong as often as they are right. Apple is famously secretive in its product development, for very good reasons. First the free publicity is worth millions when the curtain is drawn and months of speculation comes down to "oh, one last thing". If Steve Jobs had any fun in life that really mattered to him, it was in making monkeys out of the competition and us Apple tech writers in releasing the latest Apple device that we got wrong.

The second reason for the dark drapes of secrecy in Apple product development is that from the first products Apple put out years ago, the competition has reversed engineered or just plain stolen Apple's marketable ideas. Patents and trade secrets are the second line of defense as secrecy is the first. The competition hears about the latest Apple products at the public release and have no time to duplicate Apple products for some period of time, hopefully until the next version of the Apple device is ready to roll out.

The iPad is an example of the copy cats not keeping up. Just ask the "me too" tablet computer makers out there. By the time they even match the current hardware Apple has released a year back, Apple raises the bar again. "Flummoxed" is Steve Jobs word for the incredibly hard row to hoe Apple competitors face.

Thus, an early public release of Jobs plans for Apple to launch a full blown TV set runs counter to history. Steve knew his biography would be scoured by friends and foes alike for hints as to what is going to happen next in Apple's product line. With public crucifixion with rusty nails the penalty for leaking unreleased product information, would Mr. Jobs, himself publicly release Apple Television information a couple of years before the product is due to be released?

While the notion of a high end Apple HDTV set, created from scratch by Apple sounds incredibly cool there are interesting details that enter into the situation that in my mind run counter to the recent flood of publicity about Apple's TV plans being a foregone conclusion.

1. The margins on Apple products run much higher than any competitor. Apple has sharpened its pencil in supply chain purchases and due to being the largest consumer of electronic parts, they demand and get the first shot at using new parts and also get great prices due to volume and shear negotiation skills. HP decided to get out of manufacturing PS due to the approximately 7% margin common to the PC market. Apple has margins on the Mac of closer to 25%. Recently, HP announced that they might stay in the low margin PC manufacturing business after all. Flip, flop, flip... Sounds like NetFlix, managing their business by reacting to public outrage.

2. Steve Jobs indicated his breakthrough was in the control of HDTV content, which is in line with the current Apple TV product. Why not upgrade the Apple TV product to include DVR and cloud features that would make any HDTV work as in Steve's vision? The large HDTV LCD displays are expensive and now just a commodity item. Margins on large screen TVs run under 10% and the prospects some bloggers have suggested of Apple getting twice the going price for their TV products at retail is not realistic, in my mind. The only thing that would change the calculous would be a revolutionaly breakthrough in display technology that Apple owns.

3. What I think is coming is a tremendous upgrade to Apple TV that includes Apple magic in some sort of HD DVR that anticipates what you will want to watch and is controlled over the internet by Siri voice commands. If the new Apple TV box could replace all current satellite or cable boxes and get Apple into the big time in streaming video content, low margins in Apple TV products could be maintained, betting on the download generated profits. That would not require building and shipping large low margin TV display products. Apple wants to sell digital content as that is a long term income rather than a complicated high cost low margin product which runs counter to all we see Apple selling. The giant server farm Apple built will not stay idle, you can bet on that.

I could be dead wrong. I have been advised by my wife that there is a Greg Mills distortion zone, but she assures me I am the only one confused by it... Will I eat an Apple HDTV if they ship one? No, but I might buy one. I would certainly buy an enhanced Apple TV DVR product which I suspect is actually what is in the works. That is Greg's Bite

 
AAPL
$101.06
Apple Inc.
+0.10
MSFT
$47.06
Microsoft Corpora
-0.46
GOOG
$587.37
Google Inc.
-8.71

MacTech Search:
Community Search:

Software Updates via MacUpdate

NeoOffice 2014.3 - Mac-tailored, OpenOff...
NeoOffice is a complete office suite for OS X. With NeoOffice, users can view, edit, and save OpenOffice documents, PDF files, and most Microsoft Word, Excel, and PowerPoint documents. NeoOffice 3.x... Read more
Typinator 6.2 - Speedy and reliable text...
Typinator turbo-charges your typing productivity. Type a little. Typinator does the rest. We've all faced projects that require repetitive typing tasks. With Typinator, you can store commonly used... Read more
PopChar X 6.7 - Floating window shows av...
PopChar X helps you get the most out of your font collection. With its crystal-clear interface, PopChar X provides a frustration-free way to access any font's special characters. Expanded... Read more
Evernote 5.6.0 - Create searchable notes...
Evernote allows you to easily capture information in any environment using whatever device or platform you find most convenient, and makes this information accessible and searchable at anytime, from... Read more
Monosnap 2.2.2 - Versatile screenshot ut...
Monosnap allows you to save screenshots easily, conveniently, and quickly, sharing them with friends and colleagues at once. It's the ideal choice for anyone who is looking for a smart and fast... Read more
Tunnelblick 3.4beta36 - GUI for OpenVPN...
Tunnelblick is a free, open source graphic user interface for OpenVPN on OS X. It provides easy control of OpenVPN client and/or server connections. It comes as a ready-to-use application with all... Read more
SoftRAID 5.0.4 - High-quality RAID manag...
SoftRAID allows you to create and manage disk arrays to increase performance and reliability. SoftRAID's intuitive interface and powerful feature set makes this utility a must have for any Mac OS X... Read more
Audio Hijack Pro 2.11.3 - Record and enh...
Audio Hijack Pro drastically changes the way you use audio on your computer, giving you the freedom to listen to audio when you want and how you want. Record and enhance any audio with Audio Hijack... Read more
Airfoil 4.8.9 - Send audio from any app...
Airfoil allows you to send any audio to AirPort Express units, Apple TVs, and even other Macs and PCs, all in sync! It's your audio - everywhere. With Airfoil you can take audio from any... Read more
WhatRoute 1.13.0 - Geographically trace...
WhatRoute is designed to find the names of all the routers an IP packet passes through on its way from your Mac to a destination host. It also measures the round-trip time from your Mac to the... Read more

Latest Forum Discussions

See All

This Week at 148Apps: September 15-19, 2...
Expert App Reviewers   So little time and so very many apps. What’s a poor iPhone/iPad lover to do? Fortunately, 148Apps is here to give you the rundown on the latest and greatest releases. And we even have a tremendous back catalog of reviews; just... | Read more »
Kitty Powers’ Matchmaker – Tips, Tricks,...
Hey There, Kittens: | Read more »
Goblin Sword Review
Goblin Sword Review By Andrew Fisher on September 22nd, 2014 Our Rating: :: RETRO GOODNESSUniversal App - Designed for iPhone and iPad Fun visuals, good music, engaging level design, and lots of content make Goblin Sword an... | Read more »
Major New Update for CSR Racing Adds Fer...
Major New Update for CSR Racing Adds Ferrari and Multiplaye​r Posted by Jessica Fisher on September 22nd, 2014 [ permalink ] | Read more »
Veditor Review
Veditor Review By Jennifer Allen on September 22nd, 2014 Our Rating: :: PIMP YOUR VIDEOUniversal App - Designed for iPhone and iPad Want to add stickers and music to your videos? Veditor can do that easily.   | Read more »
1849′s Nevada Silver DLC is Still Search...
A few months ago, I took a look at 1849 from SomaSim. This Gold Rush-themed city builder for iPad had a fair bit going for it, but lacked in a few crucial areas to make it a true stand-out on the App Store. SomaSim has since added in a sandbox mode... | Read more »
Fruit Ninja Will be Reborn With a Massiv...
Fruit Ninja Will be Reborn With a Massive Update and Origins Animation Series Posted by Jessica Fisher on September 22nd, 2014 [ permalink ] Halfbrick Studios is rebuilding | Read more »
Daniel Tiger’s Grr-ific Feelings Review
Daniel Tiger’s Grr-ific Feelings Review By Amy Solomon on September 22nd, 2014 Our Rating: iPad Only App - Designed for the iPad Daniel Tiger’s Grr-ific Feelings includes activities that allow young children explore different... | Read more »
CloudMagic Updated for iOS 8 – Adds Inte...
CloudMagic Updated for iOS 8 – Adds Interactive Notifications, Share Extension, and More Posted by Jessica Fisher on September 22nd, 2014 [ | Read more »
Starbase Annex (Games)
Starbase Annex 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: "it’s really very clever... a little bit of Hearthstone and a dash of Eclipse" - PocketTactics.com From the creator of Starbase... | Read more »

Price Scanner via MacPrices.net

New iPhones Score Big in SquareTrade Breakabi...
SquareTrade has announced the iPhone 6 and its larger sibling, iPhone 6 Plus, performed impressively in Breakability testing, and each carries the top Breakability Score in their respective category... Read more
10 Million + First Weekend Sales Set New iPho...
Apple has announced it sold over 10 million new iPhone 6 and iPhone 6 Plus models, a new record, just three days after the launch on September 19. iPhone 6 and iPhone 6 Plus are now available in the... Read more
Betty Crocker Launches New Cookbook for iOS
Betty Crocker, a General Mills brand, an established food industry leader, has announced its free digital cookbook app has been refreshed to make cooking with iPhone, iPad and iPod touch even easier... Read more
Apple restocks some refurbished 2014 MacBook...
The Apple Store has restocked some Apple Certified Refurbished 2014 MacBook Airs, with prices starting at $769. An Apple one-year warranty is included with each MacBook, and shipping is free. These... Read more
13-inch 128GB MacBook Air on sale for $949, s...
B&H Photo has the new 2014 13″ 1.4GHz/128GB MacBook Air on sale for $949.99 including free shipping plus NY tax only. Their price is $50 off MSRP. B&H will also include free copies of... Read more
Apple offering free $25 iTunes Gift Card with...
The Apple Store is offering a free $25 iTunes Gift Card with the purchase of a $99 Apple TV for a limited time. Shipping is free. Read more
Apple refurbished iPod touch available for up...
The Apple Store has Apple Certified Refurbished 5th generation iPod touches available starting at $149. Apple’s one-year warranty is included with each model, and shipping is free. Most colors are... Read more
iFixIt Tears Down iPhone 6; Awards Respectabl...
iFixit notes that even the smaller 4.7″ iPhone 6 is a giant among iPhones; so big that Apple couldn’t fit it into the familiar iPhone form factor. In a welcome reversal of a recent trend to more or... Read more
Phone 6 Guide – Tips Book For Both iPhone 6...
iOS Guides has announced its latest eBook: iPhone 6 Guide. Brought to you by the expert team at iOS Guides, and written by best-selling technology author Tom Rudderham, iPhone 6 Guide is packed with... Read more
How to Upgrade iPhone iPad to iOS 8 without D...
PhoneClean, a iPhone cleaner utility offered by iMobie Inc., reveals a solution for upgrading iPhone and iPad to iOS 8 without deleting photos, apps, the new U2 album or anything. Thanks to more than... Read more

Jobs Board

Project Manager / Business Analyst, WW *Appl...
…a senior project manager / business analyst to work within our Worldwide Apple Fulfillment Operations and the Business Process Re-engineering team. This role will work Read more
*Apple* Retail - Multiple Positions (US) - A...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** At the Apple Store, you connect business professionals and entrepreneurs with the tools they need in order to put Apple solutions to work in their Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.