Big Disappointment – Apple iTV Not Coming: Pro
For months, one analyst after another has told us to prepare for an iTV that will change the living room forever. Could they all have gotten it wrong?
Porter Bibb of Media Tech Capital Partners tells us that Street expectations are entirely wrong – effectively an iTVis not coming.
By iTV we’re referring to a new gadget from Apple that’s widely expected to look like a flat panel TV but will integrate the entire Apple eco-system creating a revolutionary new media experience.
“That was Steve Jobs' dream and vision but it will never happen,” says Bibb. “The TV set business has gone south. Everyone is exiting,” he says on CNBC’s Halftime Report.
Largely Bibb just doesn’t think Apple has the time or inclination to navigate all the issues that must be bridged in order to create such a device.
“Apple has been talking to networks and studios but they don’t have a deal yet,” he says. And Bibb thinks the cable companies won’t relinquish control. They won't cut the cord.
In other words, Bibb doesn't see the kind of gadget coming the Street has been expecting ever since Walter Isaacon wrote about it in his biogrpahy of Steve Jobs.
"He very much wanted to do for television sets what he had done for computers, music players, and phones: make them simple and elegant," Isaacson wrote.
Isaacson continued: "'I'd like to create an integrated television set that is completely easy to use,' he told me. 'It would be seamlessly synced with all of your devices and with iCloud.' No longer would users have to fiddle with complex remotes for DVD players and cable channels. 'It will have the simplest user interface you could imagine. I finally cracked it.'"
Bibb says that's not coming.
Now, that’s not to say that there won’t be a new gadget. Bibb fully expects an updated Apple TV – but this gadget will be much like what’s on the market now. “It will be a nice set top box,” he says.
But the bottom line here is that according to Bibb, Apple is not coming out with an iTV to the expectations of the market.
Bibb's commentary comes in stark contrast to comments made by many other Apple analysts. Back in April, Jefferies analyst Peter Misek was so sure Apple would “revolutionize” the way you watch TV he raised his price target to $800 from $699 a share. (Read More:Apple TV System Will Change Your Living Room: Analyst)
And Piper Jaffray analyst Gene Munster told us in May that CEO Tim Cook was effectively telegraphing to his customers, 'don't buy a new TV - we've got one coming.' Munster had said that it was not a question of whether an iTV was coming - it was only a matter of when. (Read More:Don’t Buy a TV, Apple Is Working on Something Big: Munster)
What do you think? We want to know!
Posted by CNBC's Lee Brodie
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Trader disclosure: On August 16, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Brian Kelly is long TGT; Brian Kelly is long XHB; Brian Kelly is long GLD; Brian Kelly is short DLTR; Brian Kelly is short DG; Brian Kelly is short FDO; Mike Murphy is long AAPL; Mike Murphy is long SBUX; Mike Murphy is long TWI
For Deborah Weinswig
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of TGT
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of DG
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s) WMT
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For Julian Mitchell
I, Julian Mitchell, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
For Mark Hawtin
GAM is long AAPL
GAM is long FB
GAM is long MSFT
GAM is long GOOG
GAM is long STX
For Porter Bibb
MediaTech is long AAPL
CNBC.com with wires.