Apple’s slow-selling Apple TV may be revamped into a $99 iPhone-sized device that might appeal to gamers. The new Apple TV could run the iPhone OS and pull in cloud-based content. An analyst said some games for the iPhone, iPad and iPod touch would work well if Apple offers a game controller. A new Apple TV could compete with Google’s Smart TV.
Hooking an iPhone to a TV is hardly the first thing that would cross the minds of the smartphone’s billions of users. But with Apple’s sister device, Apple TV, selling far slower than the iPhone after almost three years on the market, the company may be looking for a winning combination.
A source close to the computer giant reportedly told a tech site that Apple TV is getting a major revamp. The next generation may be smaller and leaner but pack more value, run the latest iPhone operating system Relevant Products/Services and, with only 16 gigabytes of storage Relevant Products/Services, depend on cloud Relevant Products/Services content, according to a report in Engadget, which said the device — essentially an iPhone sans touchscreen — could be as cheap as $99.
That’s a big change from the current $229 Apple TV with 160-gigabyte hard drive that sends content from iTunes, YouTube, Flickr and other sites or services to high-definition television screens. The report said the new Apple TV will be internally the same as the imminent iPhone 4G, with an A4 processor and capable of 1080p HD.
Gamer’s Delight?
One group of consumers who could benefit from the new device is gamers.
“While some of the games for the iPhone, iPad and iPod touch are touch-centric, other games would work quite well with a more traditional game controller,” said Michael Inouye, a digital-home analyst for ABI Research.
“In fact, some might argue the touch interface is simply serviceable but not ideal for some games,” Inouye added. “So if Apple were to include or offer a game controller for the Apple TV, the device could potentially become a game platform as well.”
If the Apple TV platform described in the report is similar in design to the iPhone, it could have widespread appeal to casual gamers, who have been found by Nintendo to be a strong market, Inouye said. Cloud-based gaming could also have wide appeal by allowing gamers to sample expensive titles.
“Ultimately, the big issue is the user interface, an area Apple has done a remarkable job with in the past, so there is certainly potential,” Inouye said. “Usually this type of device, a stand-alone digital media adapter or Internet device, has not fared well in the market.”
More Value Needed
Avi Greengart of Current Analysis agrees.
“Apple TV has not succeeded in leveraging Apple’s iTunes/iPod/iPhone infrastructure Relevant Products/Services in the living room, and it’s a big strategic hole for the company,” Greengart said. “Consumers are not willing to attach another device to their TV unless it offers a clear value proposition. For example, game consoles play games, optical disc players play movies, and the Roku is an inexpensive way to stream content from Netflix. But Roku was only successful once the cost of the box dropped below $100.”
Last week Google announced it is partnering with Sony, Intel and Logitech to produce Smart TV, which will integrate Google’s Android operating system into televisions and allow TV viewing and Internet access on the same screen.
Engadget’s report said Apple’s new device won’t be released at the June 7 Worldwide Developer’s Conference, which is believed to be devoted to the new iPhone, and that Apple was working on the Apple TV upgrade before Google’s TV announcement.
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