Apple (AAPL) Could Have New TV Product Along With New iPad on Oct. 16 - Analyst

October 8, 2014 12:28 PM EDT
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Apple (NASDAQ: AAPL) just sent out invitations for its October 16th. The tagline for the event is: "It's been way too long." While it is widely expected that Apple will introduce new, slimmer, faster iPads with Touch-ID, the company could also have another item up its sleeve.

Global Equities Research analyst Trip Chowdhry also sees the potential for a new Apple TV Player with its own App Store after talking with developers. Timing, however, remains unclear, he said. "All these developers are expecting New Apple TV Player with its own AppStore," he said. "However, Developers are split on the timing of the launch. Some of the Developers think it will be unveiled on October 16th, others think probably along with the launch of new Apple Watch in February 2015."

Below are his notes:

All these developers are unanimous in expecting the Launch of new Apple TV is much closer today than ever before, for the following reasons:

  • 1. The Screen resolution of iPhones and iPads and Regular TV are approaching parity
  • 2. Apple has been insistent that Developers use MVC (Model View Controller) programming pattern - basically this approach automates the application to be rendered correctly on any screen
  • 3. There is a common belief among developers that moving forward, every apple device will have its own AppStore
  • 4. All these developers strongly believe that Apple has opened its Apple TV API's to some big developers including Facebook, Twitter, CNBC and Disney
  • 5. Actually, these developers feel that Facebook and Twitter API's may be built into Apple TV Platform API, which if true, could jump start a completely new TV experience called "Social TV"

So what new experiences may be possible with the potential new Apple TV Platform? Below is the converged view:

  • 1. Today's TV is only a broadcast medium - unidirectional - Apple's TV Platform is probably aimed at coalescing - broadcast with interactivity and sharing - and it is here where both Facebook and Twitter API's in Apple TV API's play a significant role
  • 2. Basically, developers tell us that ..."Instead of thinking of TV Channels, think in-terms of TV Applications that can be accessed, installed on Apple TV, and can be viewed on any regular HD TV
  • 3. Developers feel that as soon as Apple opens up its Apple TV API's to all its developers, the following application categories will find immediate adoption:
    • 1. Photo and video sharing applications
    • 2. Travel Applications
    • 3. Business Applications
    • 4. Games Applications

However, the missing element is "Remote Control

  • Developers think that both iPhone 6 and upcoming Apple Watch could act as a remote control for Apple TV Applications

Business Model:

  • 1. Apple TV Apps could be purchased from Apple AppStore - probably the same 70%: 30% Split could work
  • 2. Apple TV Apps could support Ads - developers don't know the revenue split in this situation
  • 3. Apple TV Devices. Currently their are about 20 million Apple TV devices, sold at $99 per device. If Apple TV really opens up its API's to the Developers, it is conceivable that every household that has an iPhone will also have an Apple TV

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