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Kuo: ‘We Won’t See an Apple Television Set Until 2015 or Later’

Kuo: ‘We Won’t See an Apple Television Set Until 2015 or Later’

The usually reliable Ming-Chi Kuo today told investors that he does not expect Apple to produce a television set until 2015 or 2016. However, the KGI Securities analyst does believe Apple may launch a new version of their Apple TV set top box that will contain the A7 processor, which is found in the iPhone 5s, and the company’s newest iPad models.

Apple TV

Kuo, via MacRumors:

We expect Apple to launch a new version of the Apple TV with an A7 processor in 2014, and we forecast 2014 shipments to total 8.2mn units. Shipment growth will be limited unless Apple is able to integrate more TV content, services and its App Store, in our view.

Kuo says the cost of launching a supply chain for television set production may be the major stumbling block for Apple’s television plans. The company has a continuing struggle when it comes to acquiring additional content deals. Kuo says integrating content, an App Store, and other services are the keys to a successful product.

“We believe the slowdown in Apple TV shipments suggests Apple faces challenges in integrating TV content and services. If Apple wants to launch iTV, the challenges of integrating content and service are more difficult considering the different TV content ecosystems (e.g. cable operators) in various countries. Moreover, establishing an iTV supply chain is very costly. Thus we believe iTV launch will be delayed to end-2015 or early 2016 at the earliest.”

Apple has so far been unable to secure deals with content providers and cable companies that would be required to offer the type of experience Apple is known for with its other products. It is reportedly in ongoing negoiations with numerous companies such as Time Warner.