Are Apple Getting Ready To Manufacture Connected TV?

Everyone has been wondering when the leading digital media company, famed for bringing out new technology will build a connected tv. And it looks like Apple is ready to pounce according to investment firm Piper Jaffray. Analyst Gene Munster who first suggested this back in early 2010, says that Apple’s big investments in LCD display technology shows that they are looking to hit the connnected tv market just in time to dominate, as they have with both phones and tablet pc’s.

Connected TV from Apple coming soon?

Apple have been putting some serious investment into components and manufacturing facilities. Munster is adding this fact to the growth of the connected TV market, which is looking to number 106 million by 2012, which is around half of tv sets sold.

Munster said:- “On Apple’s most recent earnings call, the company announced that it executed long-term supply agreements with three vendors and will spend about $3.9 billion over a two-year period,” he writes. “Based on our meetings in Asia (not with component suppliers) in conjunction with recent media reports, we believe Apple is securing displays for future products. Apple has started to emphasize display technology in recent months (iPhone 4, iMac 27″) and we expect this emphasis to continue with the second gen iPad, future iPhones and Macs, as well as a future Apple television.”

He estimates that Apple would be able to shift around 1.4 million of the new tv sets worth around $2.5 billion. The growth thereafter would be impressive too. Looking at $4 billion by 2013 and rising in 2014 to $6 billion. Apple are also investing in 3D technologyAna which would be a good fit for an Apple branded tv set.

So what kind of tv would the mighty Apple produce? According to Munster they could be pretty big at up to 50 inch screens. He said:- “Recent developments in Apple’s strategy, including the component deal we believe could secure up to 50″ LCD displays, bolster our confidence that the company remains serious about the connected living room.”

Although Apple already have a ‘leg-in’ to the connected market with their Apple TV set-top box, the future is looking to be a tv with everything built in. The expected demise of Blu-Ray paves the way for digital only files all stored in the tv and without the need for lots of external boxes.

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Steve Sanger
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