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Things I don’t think we’ll see: a 99 buck iPhone, an Apple television

Written by: Dennis Sellers

Article Overview: "Macsimum News" Editor Dennis Sellers doesn't think we'll see the cheap iPhone and Apple-branded television that some analysts are predicting.

Things I don’t think we’ll see: a 99 buck iPhone, an Apple television

In some cases analysts are outdoing Apple rumor mills. Among their latest (or at least revived) predictions are a US$99 iPhone and an Apple-branded television set. But I don’t think we’ll see either.

RBC analyst Mark Abramsky predicts that we’ll see an US$99 iPhone this summer with fewer features and a lower data plan. I’m dubious of this. Both Apple CEO Steve Jobs and COO Tim Cook have said that Apple has no interest in competing in the low-end computer market. I believe them.

The company doesn’t play in the low end computer market, so I can’t see why the philosophy would change when it comes to smartphones. I do think we’ll see iPhones with higher capacities (I would imagine a 32GB model by summer’s end). In which case Apple would probably cut the price of the 8GB model. But a sub-$100 “iPhone nano”? I don’t think so.

I’m equally dubious about an Apple-branded television. Piper Jaffray analyst Gene Munster thinks we’ll see an Apple-connected TV later this year to go along with a new, improved version of the Apple TV. He says that, with its iTunes ecosystem, Apple could develop a unique TV without any set-top-boxes or devices attached.

“With the use of a CableCARD for digital HD TV signal, Apple could effectively replace the home entertainment system (including a music stereo, cable box, Blu-ray/DVD player, and gaming console) with an all-in-one Apple television. Such a device would command a premium among a competitive field of budget TVs; we believe Apple could differentiate itself with software that makes home entertainment simple and solves a pain point for consumers (complicated TV and component systems).”

Now while I would personally love to have a big ol’ Apple television in my living room (though I probably couldn’t afford it), I don’t think Apple will release such a device simply because it wants to keep its product line streamlined and simplified. The company wants (in my opinion) to keep a manageable number of products and not go helter-skelter in entering every consumer niche. I think Apple is more likely to work with a television manufacturer than entering this market itself.

On the other hand, if Apple’s “hobby,” the Apple TV, is taken seriously and becomes Apple’s fourth product line (along with the Mac, iPod and iPhone) that product line could be expanded to include television sets and the rumored Apple media server. If I were a betting man, I’d bet on the latter but not the former.

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Article Tags: abramsky, apple ceo, apple rumor, apple tv, cable box, cablecard, component systems, computer market, hd tv, home entertainment system, iphone, manageable number, music stereo, piper jaffray, rumor mills, stereo cable, steve jobs, television set, tim cook, tv signal



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