New rumors surrounding the long anticipated Apple TV suggest Apple is once again delaying the release. According to a research note from NPD DisplaySearch analyst Paul Gagnon, Apple has placed the TV on the back burner in order to focus on wearable devices like the iWatch. Apple, not usually last to the party, already has smart watch competition from Samsung and Sony plus a number of other companies are looking to release their own smart watches. News.cnet.com says the news of Apple's shift is rather sudden since 2014 was the expected release date.
In his report, Gagnon writes, "During the last year the rumor mill has shifted into high gear about a 2014 introduction. Indeed, our own information from TV supply chain sources pointed to the fact that Apple appeared to be lining up resources for a product introduction in the second half of 2014, likely with 2-3 large screen sizes and 4K resolution." Now it seems a 2014 Apple TV release date is not going to happen and other reports say Apple has a lot it needs to achieve before it can move off their current projects and onto a new goal.
The production and sale of TVs is a cutthroat business. Apple needs to find a way to showcase that their unit will be something wholly different from basically everything else that is on the market. Gagnon laid out three simple goals for Apple to achieve in order to guarantee themselves success with Apple TV or as it will likely be called the iTV. Gagnon's three goals include selling enough TV's to generate impressive content purchasing points. The analyst says Apple must also offer a unique product to generate an interest in that product.
Finally, Gagnon says Apple must "create follow-on replacement purchases." Zdnet.com points out that Apple will need to revamp the repair cycle if their TV is to be successful. The typical TV is replaced every seven years. Apple products have a three year replacement record. If Apple is to generate a successful product which will likely cost more than the latest version of the iPhone, they cannot expect consumers to line up in order to purchase a new TV every three years.
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