What Should Apple Do With Apple TV?

Posted: May 12, 2011 in Apple, Google
Tags: , , , , , ,

I’m going to go out on a limb and make some suggestions to Apple. As their recent meager earnings and growth show, they really need my advice.

Apple TV needs to be transformed. Start by allowing apps to run on it. The goal should be to make it a casual gaming platform. Card games would work especially well. The TV would show the overall table. Each player would view his hand on an iPhone, iPod Touch, or iPad. A simple controller could be developed and sold for people without the above devices. The key is that this would integrate the Apple community of devices. iOS devices have already reached a portable gaming market share that challenges Nintendo DS.  It’s time for Apple TV to attack the Wii.

As the trends of transparency and convergence move forward it is going to be more and more important that moving from device to device is seamless. iOS on Apple TV needs to be the same overall as iOS on the iPad etc.

I said Apple TV needs to be transformed. That includes the hardware form factor. The present product is fine as an add-on device. However, GoogleTV is a big threat and the largest threat will be from TV manufacturers integrating GoogleTV into their TV sets. That will remove a lot of the value of getting an Apple TV device. This presents a dilemma. How does Apple retain total control of Apple TV, including the hardware, while attacking GoogleTV. The answer is to build a version of Apple TV in a slim card format that can be installed in a standardized slot on a TV. The manufacturer will get to advertise “Apple TV inside.” Apple will get to control the hardware and software. Furthermore, while TV sets have long replacement cycles, Apple will still be able to tempt consumers to update their Apple TV card every two to four years at a $99 cost. As GoogleTV gets built inside of TV’s this will be an issue for Google. We already see that the original Android phones can’t run the newest releases of Android.

When OSX and iOS merge, Apple will have a single solution across desktop, laptop, tablet, phone, and TV. Furthermore, most of their solution will fit the model of upgrading every two to four years. That not only generates increased revenue but it allows the software to move forward without being hampered by legacy device issues. Microsoft has been hindered by the need to have Windows run on old hardware. This has been less of an issue for Apple. Apple should work to maintain that advantage.

Eventually the content on your phone will link to your TV. Video calls will transfer seamlessly from device to device. The winning companies will be the ones that generate an integrated and transparent ecosystem of devices. Apple has a tremendous opportunity here. The iPhone and iPad are seamless to move between. OSX, with the introduction of Lion, will look more like iOS. That leaves the TV. Apple can certainly position the iMac as a TV. However, that market will be small compared to the TV market as a whole. They will be in danger of being overwhelmed by GoogleTV. Today companies like Panasonic offer their own, proprietary internet connectivity solutions. In the future they will look to go with a mainstream third party solution. Apple needs to make sure they are a big portion of the solution.

Apple TV has been almost a hobby device for Apple. That is changing. It’s time for Apple to see how important it is to make Apple TV become the standard for TV connection to the internet. Eventually it become a streaming media world. As convergence progresses the DVD player will disappear as will the set top box. The game console will disappear too. There will just be the TV. Apple needs to make sure they are in that TV.

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Comments
  1. […] TV set or if you do use the TV, have a second display. Wait, isn’t this just like what I was suggesting for Apple? Oh yeah, the Nintendo controller includes accelerometers and gyros just like an iPhone. […]

  2. […] recommendation: If I was willing to tell Apple what to do then why not another multibillion dollar company that is highly profitable? So Google, here is what […]

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