Rumors about Apple TV have been circulating for two years. Will the third year be the charm?
"Everyone is expecting it," says David Kirkpatrick, founder of Technonomy Media and author of The Facebook Effect. "There are lots of reasons to think Apple can and should do a TV product" beyond the simple set-top box the company already makes, Kirkpatrick tells The Daily Ticker. It would be an "actual TV with guts that connects to the Internet," according to Kirkpatrick.
The Wall Street Journal reported earlier this week that Apple (AAPL) has been meeting with suppliers, including Japan's Sharp Corp., to test designs for a large-screen high definition television set. Apple had no comment on the Journal report.
"Everyone wants a better TV experience," says Kirkpatrick and Apple presumably has the means to provide that. "Pretty much everybody at this point believes that Apple is the best at creating good interfaces and experiences in consumer electronics. So everyone wants Apple to solve the problem."
Apple TV could also help satisfy Apple's need to grow revenues, says Kirkpatrick. In October Apple said revenues could reach $52 billion for the current quarter, which was $3 billion below analysts' expectations. The news sent Apple shares falling, resuming a decline that began after the stock closed at a record high of $702.10 in mid-September.
Apple shares are now trading 21% below that record high but its market cap remains the biggest in the world at $498 billion.
"Wall Street is most eager to see Apple do TV," says Kirkpatrick. It could potentially be a boon for CEO Tim Cook who "could get more credit than he's ever gotten before, if he pulls it off," says Kirkpatrick. He adds that Cook is proving "a great strategist" for the tech giant.
More from The Daily Ticker: