Apple Stock News: Apple Not Making New TV

Apple Stock News

In an open letter to Apple CEO Tim Cook, activist investor Carl Icahn wrote that he expected Apple to release a new television set in 2016. However, the Wall Street Journal has reported that Apple scrapped plans to release a television set over a year ago, as they did not have the breakthrough technology necessary to justify entering the television market. In May of 2013, Cook said Apple is has a grand vision for television, but this grand vision might have more to do with its Apple TV set top box instead of a physical television now.

apple stock news

Apple is focused on creating an online TV service through the Apple TV, a new version of which is rumored to be announced during the company’s World Wide Developers Conference in the beginning of June. The company will partner with programmers to offer a bundle of channels over the Internet to its devices, including it iPhones and iPads, as well as for television through the set top box. Apple hopes to reveal a slimmer Apple TV with a redesigned remote control at the conference next month, and the device will start programming in the fall.

Typically, Apple likes to enter into new markets with breakthrough technology giving it an advantage over its competitors, such as the introduction of the iPhone in the nascent smartphone market in 2006. Apple did not believe it had the technology needed to take on market leader Samsung in the television market, which is extremely risky and has very low margins. While Apple researched new display technologies and front-facing cameras above the screen that would make face time possible on the television, but decided it wasn’t enough of a differentiator to justify entering the market.

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