Apple Reconsiders Building Its Own Television Set
Apple is once again exploring the idea of creating a full-fledged television, despite previously abandoning prototypes due to low profit margins and high costs. The company continues to weigh the smart home market against the financial realities of the TV industry.
Apple is currently revisiting the idea of building its own television set, a concept that dates back to the vision of late co-founder Steve Jobs. According to Bloomberg's Mark Gurman, the tech giant previously builds full-scale prototypes of a large display that doubles as a touchscreen Mac or iPad. However, the company ultimately halts the project after realizing the television market operates on low margins and consumers rarely upgrade their sets.
The financial realities of the TV industry repeatedly pose a major roadblock for Apple, as high manufacturing costs make it difficult to maintain the company's signature profit margins. In 2019, Apple considers the television idea again but decides instead to focus on bringing its Apple TV app and streaming subscription to televisions manufactured by other brands. This strategy allows Apple to maintain a presence in the living room without taking on the financial risks of producing its own hardware.
Now, as Apple develops a new range of smart home devices that includes a wall-mounted tablet, a dedicated Apple television is back on the table for internal discussion. Despite this renewed interest, company executives could easily be dissuaded once again by the exact same market and cost factors that killed the project in the past. The debate highlights Apple's ongoing struggle to balance its desire for a complete smart home ecosystem with the harsh economic realities of the television industry.