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Friday, 02 March 2012 19:55

Analysts weigh in on Apple TV strategy

Written by Peter Scott



Slap an Apple sticker on it, charge double


Apple is expected to launch its first smart TV later this year, and since the Cupertino crew tends to be quite a bit secretive, analysts are offering their take on Apple’s strategy.

Gene Munster and Claire Atkinson claim Apple is planning to come up with a TV that will be much cooler and easier to use than other smart TVs, back it with a virtual cable company, offering tons of content while paying the content providers peanuts and thus reduce proper cable companies to “dumb pipes” for content and connectivity.

Of course, all this won’t come cheap for the consumer, and Apple plans to charge twice what consumers usually pay for TVs for the pleasure of having the latest gadget.

Atkinson argues that Apple will use its considerable clout to make content providers an offer they can’t refuse, repackage their content and charge consumers for it. In addition, Apple is also planning to persuade cable companies into playing ball, otherwise they will be converted into a “dumb pipe.”

The plan sounds pretty ambitious, as Apple would gradually start to make content providers and cable companies less relevant, and the latter could even become completely redundant in the long run. Then again, Apple could be biting off more than it can chew.

More here.



Last modified on Saturday, 03 March 2012 00:00

Peter Scott

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