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

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

PDFKey Pro 4.3 - Edit and print password...
PDFKey Pro can unlock PDF documents protected for printing and copying when you've forgotten your password. It can now also protect your PDF files with a password to prevent unauthorized access and/... Read more
Kodi 15.0.beta1 - Powerful media center...
Kodi (was XBMC) is an award-winning free and open-source (GPL) software media player and entertainment hub that can be installed on Linux, OS X, Windows, iOS, and Android, featuring a 10-foot user... Read more
DiskCatalogMaker 6.4.12 - Catalog your d...
DiskCatalogMaker is a simple disk management tool which catalogs disks. Simple, light-weight, and fast. Finder-like intuitive look and feel. Super-fast search algorithm. Can compress catalog data... Read more
Macs Fan Control 1.3.0.0 - Monitor and c...
Macs Fan Control allows you to monitor and control almost any aspect of your computer's fans, with support for controlling fan speed, temperature sensors pane, menu-bar icon, and autostart with... Read more
Lyn 1.5.11 - Lightweight image browser a...
Lyn is a lightweight and fast image browser and viewer designed for photographers, graphic artists and Web designers. Featuring an extremely versatile and aesthetically pleasing interface, it... Read more
NeoOffice 2014.11 - Mac-tailored, OpenOf...
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
LaunchBar 6.4 - Powerful file/URL/email...
LaunchBar is an award-winning productivity utility that offers an amazingly intuitive and efficient way to search and access any kind of information stored on your computer or on the Web. It provides... Read more
Remotix 3.1.4 - Access all your computer...
Remotix is a fast and powerful application to easily access multiple Macs (and PCs) from your own Mac. Features Complete Apple Screen Sharing support - including Mac OS X login, clipboard... Read more
DesktopLyrics 2.6.6 - Displays current i...
DesktopLyrics is an application that displays the lyrics of the song currently playing in "iTunes" right on your desktop. The lyrics for the song have to be set in iTunes; DesktopLyrics does nothing... Read more
VOX 2.5.1 - Music player that supports m...
VOX is a beautiful music player that supports many filetypes. The beauty is in its simplicity, yet behind the minimal exterior lies a powerful music player with a ton of features and support for all... Read more

This Week at 148Apps: May 18-22, 2015
May Days at 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above the... | Read more »
Biz Builder Delux (Games)
Biz Builder Delux 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: Ah, there's nothing like the rhythmic bustle of a burgeoning business burg... especially when you're the one building it... | Read more »
Auroch Digital is Bringing Back Games Wo...
| Read more »
Blades of Brim is a New Endless Runner f...
SYBO Games, the minds behind the ever-popular Subway Surfers, have announced their latest project: Blades of Brim. [Read more] | Read more »
Carbo - Handwriting in the Digital Age...
Carbo - Handwriting in the Digital Age 1.0 Device: iOS Universal Category: Productivity Price: $3.99, Version: 1.0 (iTunes) Description: | Read more »
Draggy Dead (Games)
Draggy Dead 1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1 (iTunes) Description: Ditch your dead end job and take up a rewarding career in Grave Robbing today!Guide the recently deceased to a fun filled life of... | Read more »
Bad Dinos (Games)
Bad Dinos 1.0.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.0 (iTunes) Description: | Read more »
The Apple Watch isn't Great as a Fi...
| Read more »
Show the World What You See With Stre.am...
Live broadcasting is getting popular on mobile devices, which is why you can now get Stre.am, by Infinite Takes. [Read more] | Read more »
PhotoTime's 2.1 Update Adds Apple W...
The latest PhotoTime update is adding even more functionality to the handy photo organizing app. Yep, including Apple Watch support. [Read more] | Read more »

Price Scanner via MacPrices.net

12-inch MacBook stock status for Monday, May...
The new 12″ Retina MacBooks are still on backorder at The Apple Store with a 3-5 week waiting period. However, a few models are in stock today at Apple resellers. Stock is limited, so act now if you’... Read more
New 27-inch 3.3GHz 5K iMac in stock with free...
Adorama has the new 27″ 3.3GHz 5K iMac in stock today for $1999 including free shipping plus NY & NJ sales tax only. Adorama will include a free copy of Apple’s 3-year AppleCare Protection Plan. Read more
Memorial Day Weekend Sale: New 27-inch 3.3GHz...
Best Buy has the new 27″ 3.3GHz 5K iMac on sale for $1899.99 this weekend. Choose free shipping or free local store pickup (if available). Sale price for online orders only, in-store prices may vary... Read more
OtterBox Maximizes Portability, Productivity...
From the kitchen recipe book to the boarsroom presentation, the OtterBox Agility Tablet System turns tablets into one of the most versatile pieces of handheld technology available. Available now, the... Read more
Launch of New Car App Gallery and Open Develo...
Automatic, a company on a mission to bring the power of the Internet into every car, has announced the launch of the Automatic App Gallery, an app store for nearly every car or truck on the road... Read more
Memorial Day Weekend Sale: 13-inch 1.6GHz Mac...
Best Buy has the new 13″ 1.6GHz/128GB MacBook Air on sale for $849 on their online store this weekend. Choose free shipping or free local store pickup (if available). Sale price for online orders... Read more
Memorial Day Weekend Sale: 27-inch 3.5GHz 5K...
Best Buy has the 27″ 3.5GHz 5K iMac on sale for $2099.99 this weekend. Choose free shipping or free local store pickup (if available). Sale price for online orders only, in-store prices may vary.... Read more
Sale! 16GB iPad mini 3 for $349, save $50
B&H Photo has the 16GB iPad mini 3 WiFi on sale for $349 including free shipping plus NY sales tax only. Their price is $50 off MSRP, and it’s the lowest price available for this model. Read more
Price drop on 2014 15-inch Retina MacBook Pro...
B&H Photo has dropped prices on 2014 15″ Retina MacBook Pros by $200. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799.99 save $200 - 15″ 2.5GHz... Read more
With a Mission to Make Mobile Free, Scratch W...
Scratch Wireless, claiming to be the world’s first truly free mobile service, has announced the availability of a new Scratch-enabled Android smartphone, the Coolpad Arise. The smartphone is equipped... Read more

Jobs Board

Payments Counsel, *Apple* Pay (mobile payme...
**Job Summary** Apple is looking for an atto ey to join Apple 's Legal Department to support Apple Pay. **Key Qualifications** 7+ years of relevant experience Read more
Touch Hardware Design and Integration Enginee...
…Summary** Design, develop, and launch next-generation Touch solutions in the new Apple Watch product category. The Touch team develops cutting-edge Touch solutions and Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* TV Live Streaming Frameworks Test En...
**Job Summary** Work and contribute towards the engineering of Apple 's state-of-the-art products involving video, audio, and graphics in Interactive Media Group (IMG) at 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
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.