Apple (AAPL) Dropped Plans for TV - Report

Apple (NASDAQ: AAPL) shelved plans to make a HD television more than a year ago, the Wall Street Journal reported Monday evening citing people familiar with the matter. The news came just hours after Apple investor Carl Icahn said he expects the company to introduce such a device in 2016 and used revenue projections from the device in part to justify his new $240 price target.

While working on the project for nearly a decade, Apple executives scrapped the plan as they didn't view breakthrough features, like adding sensor-equipped cameras for video calls, compelling enough to enter the highly competitive TV market which is dominated by Samsung.

Yesterday, in his assumptions for his new $240 price target for Apple, Mr. Icahn said, "after many years of rumors as part of Apple’s push into television and as we referenced previously, we expect in FY 2016 Apple will sell 55” and 65” ultra high definition television sets. We forecast revenues of $15 billion in FY 2016 and $37.5 billion in FY 2017 on 10 million and 25 million units respectively with average selling prices of $1,500."

While Apple may not make a full-fledged TV set the company is working on developing its online TV service and redesigning the Apple TV box. The company recently was the exclusive digital launch partner for HBO Now.

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