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First, I doubt the iTV will be an actual television, it will probably be a set-top box like the current TV. Maybe it will obviate the need for a cable box. Te

First, I doubt the iTV will be an actual television, it will probably be a set-top box like the current TV. Maybe it will obviate the need for a cable box. Television screen are a low-profit margin business, and people don't want to upgrade to frequently. More info here: http://www.torontostandard.com/technology/why-apples-itv-wont-be-a-tv-but-will-still-be-huge http://www.torontostandard.com/technology/why-apples-itv-won... Second, I think this article is dead wrong. Consumers will care more about a TV being "smart" and having nice functionality, not how crisp or large the pictures is like Samsung claims. Any modern TV is nice enough that manufacturers need to compete on other features, like the accessibility of content. While there is a lot of content available over the internet now (legally and otherwise), viewing it is never painless, and this can be made easier. This is a space ripe for disruption and Samsung is apparently burying their head in the sand.

onemoreact 15y ago
A normal TV last's 5-20 years a smart TV get's outdated in 3-5. Consumers have long been aware of this which is why small TV's come with built in DVD players but large TV's don't.
chollida1 15y ago
> Television screen are a low-profit margin business, and people don't want to upgrade to frequently. The same can be said of PC's. Apple came in and changed that.
- huggyface 15y ago
  The same can be said of PC's. Apple came in and changed that. The iMac turned around things for Apple because they were cheap, all-in-one computers. I considered getting one at the time just as a kitchen computer. Apple played the existing game with the iMac. Even now in their computer products if you spec out a comparable competitor, the pricing is very similar. Apple makes big money in nascent new markets -- tablets and smartphones. Tablets because they can draft int the pricing of computers, and smartphones because most of the cost is hidden by subsidization (if everyone had to pay the total upfront cost of the device things would rapidly change).
- joejohnson 15y ago
  I believe that screen manufacturers flooding the market has brought the profit margins on TV's down to about 10-15% http://smallbusiness.chron.com/average-profit-margin-televisions-34457.html http://smallbusiness.chron.com/average-profit-margin-televis... However, Apple's business model - at least for iPod/iPhone, maybe MacBooks - has been to make a decent profit on hardware (estimates as high as 30%), and to incentivize the higher price with peripherals, such as a large support network, good compatibility and a plethora of apps.

onemoreact 15y ago

A normal TV last's 5-20 years a smart TV get's outdated in 3-5. Consumers have long been aware of this which is why small TV's come with built in DVD players but large TV's don't.

chollida1 15y ago

> Television screen are a low-profit margin business, and people don't want to upgrade to frequently. The same can be said of PC's. Apple came in and changed that.

huggyface 15y ago
The same can be said of PC's. Apple came in and changed that. The iMac turned around things for Apple because they were cheap, all-in-one computers. I considered getting one at the time just as a kitchen computer. Apple played the existing game with the iMac. Even now in their computer products if you spec out a comparable competitor, the pricing is very similar. Apple makes big money in nascent new markets -- tablets and smartphones. Tablets because they can draft int the pricing of computers, and smartphones because most of the cost is hidden by subsidization (if everyone had to pay the total upfront cost of the device things would rapidly change).
joejohnson 15y ago
I believe that screen manufacturers flooding the market has brought the profit margins on TV's down to about 10-15% http://smallbusiness.chron.com/average-profit-margin-televisions-34457.html http://smallbusiness.chron.com/average-profit-margin-televis... However, Apple's business model - at least for iPod/iPhone, maybe MacBooks - has been to make a decent profit on hardware (estimates as high as 30%), and to incentivize the higher price with peripherals, such as a large support network, good compatibility and a plethora of apps.