Apple Television Set Not Expected Until 2015 or Later, But A7 Apple TV Could Come in 2014

Confirming earlier reports suggesting the long-rumored Apple television set is taking a backseat to other Apple projects, KGI Securities analyst Ming-Chi Kuo today told investors that he does not expect Apple to produce a television set until 2015 or 2016.

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Kuo does believe, however, that Apple may launch a new version of the existing Apple TV set top box with the same A7 processor found in the iPhone 5s and Apple's newest iPads in 2014.

We expect Apple to launch a new version of the Apple TV with an A7 processor in 2014, and we forecast 2014 shipments to total 8.2mn units. Shipment growth will be limited unless Apple is able to integrate more TV content, services and its App Store, in our view.

According to Kuo, the cost of launching a supply chain for television set production is a major obstacle for Apple's television set plans, as is the company's continued struggle with procuring additional content deals. Kuo believes that integrating TV content, an App Store, and other services are key to skyrocketing the Apple TV and a subsequent television set from a hobby to a viable product.

We believe the slowdown in Apple TV shipments suggests Apple faces challenges in integrating TV content and services. If Apple wants to launch iTV, the challenges of integrating content and service are more difficult considering the different TV content ecosystems (e.g. cable operators) in various countries. Moreover, establishing an iTV supply chain is very costly. Thus we believe iTV launch will be delayed to end-2015 or early 2016 at the earliest.

There was some speculation that Apple could release an updated Apple TV product during the company's recent iPad event, but according to TechCrunch's MG Siegler, Apple is not yet ready to debut its revamped hardware, which could include upgrades like Siri integration or motion control, so a 2014 timeline makes sense.

Apple has also thus far been unable to secure the deals with content providers and cable companies that are necessary for it to revolutionize the television experience, but it remains in ongoing negotiations with multiple companies including Time Warner.

Related Roundup: Apple TV
Buyer's Guide: Apple TV (Caution)

Top Rated Comments

ryuok Avatar
134 months ago
just forget about it
Score: 17 Votes (Like | Disagree)
derbladerunner Avatar
134 months ago
Wouldn't the A7 be a bit overkill for the AppleTV box? If Apple wants more performance out of it, just go to the dual core A5 since the iPad 2 is still in production.
Not if they finally add an SDK (e.g. for games, would work great with Bluetooth controllers, the foundations are there in iOS7).

I still don't the get need for a TV set from Apple, however. All the logic is in the little box and services in the cloud from Apple or third parties, just update the current Apple TV box.

What would be unique about an Apple TV screen compared to other brands? No need for that.
Score: 16 Votes (Like | Disagree)
peglegjack Avatar
134 months ago
All they need to do is make the Apple TV to where you can play iOS games with a controller and they'd basically slaughter the competition.
Score: 16 Votes (Like | Disagree)
osx11 Avatar
134 months ago
An A7 to do what?

App Store?
Score: 11 Votes (Like | Disagree)
hamkor04 Avatar
134 months ago
An A7 to do what?

App Store?

New generation "price Tag"
Score: 7 Votes (Like | Disagree)
Jacquesass Avatar
134 months ago
The next ATV should have an A7. Combine that with HDMI 2.0 and 802.11ac - and you could drive 4k content. Apple would leapfrog the streaming video competition, which would ensure that it sold even if they did nothing else.

Of course, a big jump in processing power would likely come with a new interface, an app-store, and some version of a game controller...
Score: 6 Votes (Like | Disagree)

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