Why Apple TV is more important than iPhone

Apple Store“Apple could unleash Apple TV this week, and this device, not the iPhone, could become the most important Apple product launch since the original iPod,” David Haskin blogs for Computerworld.

Haskin writes, “That’s because the stakes are much, much higher for Apple TV than iPhone. If iPhone succeeds, it will bring lots of revenue into Apple, but it basically is just an iPod with phone capabilities and a unique user interface. Apple TV, however, could open a whole new market for Apple and also has the potential to bring Internet distribution of movies and television into the mainstream.”

“If Apple TV succeeds, it could revolutionize digital media in general the same way iPod revolutionized digital music,” Haskin writes.

Full article here.

Related articles:
Apple TV concept may eventually catch on with consumers – March 12, 2007
Apple CFO talks Apple TV, iPhone, Leopard and retail (link to full transcript) – March 07, 2007
PC Magazine: Why Apple TV matters – February 23, 2007
Bear Stearns: Apple TV and iPhone have changed the Apple story for the better – February 21, 2007
Deutsche Bank: Apple TV could take 30% of set-top box market within a few years – February 21, 2007
How do Apple TV and Elgato’s EyeTV work together? – February 16, 2007
Apple embraces casual gaming; iPhone, Apple TV to join iPod as gaming devices – February 09, 2007
Former GM of Microsoft’s Xbox Live Arcade: Apple TV to become video game console – February 08, 2007
ZDNet’s Graham: Apple TV hits a number of sweet spots, poised to make a big impact – January 25, 2007
Is Apple out to kill cable television? – January 25, 2007
RUMOR: Apple TV sales blowing away Apple’s internal expectations – January 25, 2007
Steve Jobs: Apple TV is the ‘DVD player for the 21st century’ – January 22, 2007
Apple TV beats out iPod, hits top spot on Apple Store sales chart – January 19, 2007
Report: first batch of 100,000 Apple TVs to ship this month – January 11, 2007
Steve Jobs moves to control the living room with Apple TV – January 10, 2007
Analyst Bajarin: Apple’s iPhone and Apple TV are industry game changers – January 09, 2007
Apple premieres Apple TV: movies, TV shows, music & photos on your big screen TV – January 09, 2007
RUMOR: Apple may enter video game market – December 05, 2006
Could Apple become king of game consoles? – September 26, 2006

39 Comments

  1. In order to stress the AppleTV abilities, he downplays the iPhone. Spin at its greatest, as the iPhone is not another iPod with a phone inside, not even close.

    He is correct, however, in stating AppleTV is poised to do very well. Apple is playing a sleeper game with AppleTV, but as it ads more content, HD, and eventually (when bandwidth is there for more than 10% of the market) live sporting events and news, etc…

    A breath of fresh air vs. Cable and Dish.

  2. I’m anxious to chuck my Motorola phone for the iPhone. Not so for iTV. Not until it’s able to easily archive the shows I watch on regular TV to DVDs. The current state of DVR/DVD-recorders is failed interfaces. Automate iTV Apple!

  3. I both agree and disagree with his assessment.

    While the Iphone is spectacular, it wil be displacing already existing phones. The Apple TV may create an entirely new industry. Companies, most notably Microsoft, have been trying to connect the computer to the TV for years. If Apple TV seemlessly ties the TV with the content of Itunes, then we may be seeing a sea change in the how we obtain and view entertainment content.

    On the other hand, I think the item least talked about with the Iphone is the “halo” effect. We know that the Ipod – which has little or nothing to do with the Mac – has dramatically increased Mac sales. The Iphone runs Mac OS X. If people who buy the Iphone become familiar with the Mac OS, then the change to the Mac may become almost effortless.

  4. maczealot, YES, give us new Macs with Penryn chips and Leopard. Apple TV and iPhone are nice, but Macs are digital hubs to everything. I can’t wait for just ONE freaking Mac announcement this year. Sheesh!

  5. I don’t know. I’m afraid Apple TV might be too limited in functionality to make the splash that iPod did. If you don’t keep all of media on your computer, it’s not worth much. I think it would have been a bigger hit if it had a huge HD that could hold all of your media, plus get content wirelessly from your computer. I also think DVR functionality is a must. I understand why they didn’t add it, but that’s the deal breaker for me. The ideal product of this type for me be a central digital storage device for TV shows that I record, movies that I either buy online or rip from my DVD collection, that’s able to access music and photos from my computer. The Apple TV model makes that central device your Mac, but that doesn’t work for me. I have three HDs on my PowerMac and I need all of that room for work. I can’t afford to save movies and TV shows on it. I doubt that I’m alone. Maybe I’m wrong. I hope so for Apple’s sake.

  6. To Grapegraphics,

    vs connecting AppleTV:

    “If your TV’s HDMI port is occupied by another device, or if your TV doesn’t have an HDMI port, you can connect to Apple TV via component video and audio. So no matter what your entertainment system looks like, Apple TV connects easily.”

    And if you have a DVD player or VHS hooked up to your TV that has component video, you can run the connection thru them and still have your DVD, etc.

    Just a thought.

    N.

  7. Apple needs to integrate EyeTV, or purchase Elgato to allow them to offer a complete DVR solution. Until then my Mac Mini w/EyeTV will suit my needs just fine with no need for an AppleTV.

    MDN MW: passed; as in I’ve passed on the AppleTV for now.

  8. I wish Apple TV were released. I’d like to see some reviews,

    Now conceptually it’s a great idea. I’d love to store my porn on my (as yet non-existent) media server and watch it in my bedroom. However, Apple TV doesn’t ship with connectors for any TV I’m likely to have in my bedroom in the near future, so it seems like a waste of a product for me.

    MW: Poor as in Apple made a poor decision by not including a yellow analog out.

  9. Too bad the Apple TV WON’T succeed. Nobody wants it, it’s priced too high, and it does virtually NOTHING that anybody needs. Seriously, do you know ANYONE who needs or wants this product… especially at a $299 price point? Maybe if Apple was giving them away for free.

  10. Both are overhyped.
    Apple TV will be the biggest flop.
    Who in their right mind wants to go through the trouble to download a crap-quality movie onto their computer, then beam to Apple TV to then watch on one´s 52-inch HDTV? Crazy. Terrible quality is all Apple TV/iTunes process can do.
    The World is going HDTV and Apple wants us to get excited on watching lousy quality TV that just kind of looks okay on a 12-inch monitor.

    The Apple iPhone. Too hard to predict…but it could easily be a flop just because of things Apple can´t control. Like the Phone companies it partners with and the lousy, slow download times.

  11. “….If iPhone succeeds, it will bring lots of revenue into Apple, but it basically is just an iPod with phone capabilities and a unique user interface…..”

    Haskins “left-handed” compliment for the iPhone shows that he really doesnt “get it” …

    It’s just those things he mentions (about the iPhone) which will change the world of Cell Phones ! …
    I’d say thats pretty significant ! .. The same goes for TV, too !

    I echo the sentiments of maczealot and imaki about Leopard and the new Macs !! … can’t wait

  12. I disagree.

    The iPhone (as an entity, not the first device itself) is the eventual successor to the iPod.

    Therefore Apple TV would also have to be more important than the iPod.

    Could one make that argument?

  13. TV will be popular in time, though maybe not in this iteration. I keep coming back to the idea (to remind myself why I should be interested) that it’s intended to augment users media experience by bridging their new HDtv and their computer, but somehow this just doesn’t seem to have the “killer” quality I’d want it to. iTMS distribution model is great, but it’s expensive as a constantly-used service. Now, here’s where my mind wanders…

    For TV to be really popular, I think it needs to link internet TV content (which is in short supply right now). Here’s the Google link. Google and Apple could supplant traditional cable companies as content providers– that is, non-traditional content. Internet-based podcast-like networks, i.e. news, entertainment, etc. where all content is on-demand. It could still follows the basic advertisement-based model, so we essentially get it for “free” as long as we have a fast internet connection. Now THAT could be interesting (to me, at least). In this way, your new hdtv really does become your link to ALL media– traditional networks and the new media that’s emerging.

    I don’t think that they’ll crash Comcast or Time Warner exactly, but they could make a space for themselves in time.

  14. I didn’t think that TV was so important to so many people. I think of TV as being a baby sitter for the little ones (and bigger ones), and for adults, just something to do to pass the time if your too tired to think of something useful to do.

  15. “…Google and Apple could supplant traditional cable companies as content providers…”

    This could be true, but Apple probably would have to launch it’s own private Internet Service Provider business to accomplish this. Right now, a little more than 50% of Comcast’s customers subscribe to digital services (because Comcast Digital is not yet available nationwide) due to their need to upgrade an old infrastructure.

    As Comcast does these upgrades, they’ll be adding phone services and perhaps eventually, faster Internet, but they typically only provide 6Mbit/per second service right now and that just is not fast enough for Apple customers to download full-DVD or HD quality movies, which is what people are awaiting.

    Believe me, if Comcast Internet customers start dropping Comcast Cable, Comcast simply will raise the price of the Internet service to make up for lost revenues. Already, their strategy is to bundle all their various services together and to force people to pay HIGHER rates for unbundled services…

  16. Connor MacBook:
    “The iPhone is more important because it will change the way the world communicates, consumes information AND entertainment.”

    I doesn’t change the “way the world communicates, consumes information AND entertainment.”. It changes the device used by those who have one. What an unrealistic assessment.

  17. Steven

    In order to stress the AppleTV abilities, he downplays the iPhone.

    I don’t think he’s dowplaying it as much as saying “it’s going to be huge, that’s a given”. He won’t bother to rehash the talking points on the iPhone, because, and I think he is right, the real change for Apple in consumer space is going to be spearheaded by the AppleTV. The iPhone will be a massive consumer smash, but the AppleTV is going to rearrange the distribution of digital media in the home even more tightly around Apple and it’s products.

  18. get a grip!

    The iPhone’s user interface is a paradigm shift, and the device itself heralds the age of “internet everywhere”. There’s no need to downplay it.

    (Sure, other handhelds do the internet, but realistically, how usable are they? And how many music phones are actually better than the iPod itself?)

  19. Connor McB – get a grip. Go to South Korea and see they have been getting internet on their phones for years. And visit Europe, too. Everyone there is more interested in the 3G version of iPhone.
    Personally I think the iPhone will do okay, but nothing great.
    And the interface…well we will see how fast people can type with no buttons.
    And the screen smear factor is going to be great…not to mention scratches.
    The phone business changes too quickly, Apple can´t create new products fast enough….too dependent on the Steve to decide everything.

  20. @little niche..”..rumored that pre-orders exceeded the entire first manufacturing run (100k units)”

    That is no measure of success of the product, just lots of early adopters that swallowed the kool-aid before the product is even out….or demo-ed very well. There could be lots of disappointed people out there…

  21. Rammer

    Personally I think the iPhone will do okay, but nothing great.

    That is your opinion, but from the press, it’s obvious that that will not be the case.

    And the interface…well we will see how fast people can type with no buttons.</B.

    That’s a new one. Is there something inherently superior about fumbling about with a 1/72 scale scale keyboard with .25 centimeter buttons?

    <b>And the screen smear factor is going to be great…not to mention scratches.

    Yes. Just like how scratches destroyed the consumer appeal of the iPod. Oh wait. it didn’t.

    Here is some news for everyone: plastic scratches. Can we move on now?

    The phone business changes too quickly, Apple can´t create new products fast enough….too dependent on the Steve to decide everything.

    This is the funniest of all.

    Please enlighten us. If the phone business changes so quickly, why are most phones throwaway garbage and why did Apple, a company that has never had a phone, shake up the entire industry with heretofore unseen interface and styling?

    And please don’t point at garbage like the Prada phone. If anything thinks that the mere fact that the iPhone has a touch screen is all that makes it different, you cannot and will not grasp why everything has changed with respect to PDAs and phones.

  22. Remember when the rumors were flying about Apple maybe buying Tevo? I think maybe if that had happened, we would have gotten a more handy TV with more features that HDTV owners really want and need.

    That doesn’t mean that I don’t wish Apple all the success with their TV.

  23. Thanks Rammer, I acknowledged that other handhelds do the internet, but how well do they do it? The iPhone is set to replace my iPod, camera, and even my Mac for most e-mailing and some web surfing. Could you say that of any of the other phones out there?

    As for the phone business changing too quickly, the other handset makers have been churning out variations on the same theme for years. That’s why they’re now scrambling to play catch-up with(and why the press, and yes, users are so excited about the iPhone). We should be thankful Apple has shaken up the market with a new concept.

  24. George Wedding
    When you subscribe to a cable company, you are counted as one toward paying all the channels that are rebroadcast, which is billed based on subscriber count, and of course, the cable company makes some money off this to pay for infrastructure.

    For internet, you are paying for an IP address and bandwidth. VOIP is similiar.

    Even if no one uses cable for TV and only for internet, they still have to maintain the plant (cables, buildings, power supplies, etc.) so yes, the prices would go up, minus the cost paid to HBO, MTV, TNT, CNN and so forth.

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