Having changed the product categories of computers, portable media players, smartphones and tablets, can Apple pull the rabbit out of the hat again for devices to show web-based content on TVs? According to several rumors floating around, the Cupertino, Calif.-based computer maker may be revving up for a new try.
The reports indicate the company’s current Apple TV product, which CEO Steve Jobs described as “a hobby,” will be renamed iTV, priced at $99, and essentially be an iPhone 4 adapted for display on TVs. The product, which was originally named the iTV several years ago before becoming Apple TV, is expected to out by the fall.
720p Video
According to an analysis in 2007 by the research firm iSuppli, the relatively high raw cost to Apple of manufacturing the Apple TV meant the profit margins were very low, and certainly not near the 40 to 50 percent margins it has received on other products. The current Apple TV sells for $229.
But by building on the economies of scale created by the iPhone, the device’s component costs could be dramatically reduced, and the product could move out of the company’s classification of “hobby.” Since its launch in 2007, the product has undergone few changes, most notably an interface and operating system upgrade in 2009.
The reports, attributed to unnamed sources, indicate that the new iTV will display 720p high-definition video. This is a step down from earlier rumors, which had indicated it would support the higher-resolution 1080i or 1080p video.
The step-down is apparently a result of a decision to use the A4 processor, although some observers have noted that the processor should be able to handle 1080p.
Apple ‘Will Keep Iterating’
The new box, which is expected to use the iPhone’s iOS instead of the current Mac OS X, will also reportedly run…