What If iTV Is Not The Next Big Thing?

There is no question that Apple has dominance in the smart phone market. This is prevalent through the fact that I helped my dear old mother purchase the advice yesterday. She had to have an iPhone to listen to her classic hits in her car and join in the words of friends mania that entice her friends into long hours of intense play. My concerns do not fall with the smart phone dominance of the great apple. That is more than obvious and was confirmed when the Sprint representative exclaimed “yeah we barely sell 10 a month,” as I ask him how many Blackberrys they sell nowadays.

The story is the same again and again, no matter which analyst mouth it comes out of. The Apple iTV is set to change the world of the television industry. Apple did without doubt revolutionize the smart phone industry. Though to sit here and say that the Apple success can be replicated once again, sounds more like a gamble that smart stock picking. So I pose the question; What if iTV is not the next big thing?

First off, one of the key important selling points of the iPhone, is not just their capabilities, but its price. To go and make a purchase of the price magnitude of the iTV one will have a hard fought consumer dilemma. Yes Apple has succeed at selling iPads at a price point higher then the iPhone. Though through the lowering of the price of the old iPad and the old iPhone it is obvious that Apple realizes that their high priced products are just that, priced high. The new iTV will likely have some great features, but will those features suggest the astronomical price that goes along with it? The market for TV’s is large and fierce, not only that but developed. For apple to break into this market will be a significant challenge particularly at the price points the rumors suggest.

Second point of concern, is the sentiment regarding the stock price. The argument for the growth in the iPhone market seems somewhat valid, yes there will be other global markets to grasp in the future. Yes there will be the new phone cycle selling more iPhones. Though as the shares of Apple come into a more realistic valuation, the new argument for the stock to go higher is that the iTV and the iPad will be as much of a growth for the company as phones. Yes these products will sell and may sell decently. They are good quality products and Apple has a following. Though one cannot sit here and tell me that the iTV will move 40 million units, or anywhere in that bracket. That is suggesting that Sony and Samsung will cut there market share in half, handing it over to Apple. As we have seen in the recent months, multiple tech companies are gunning for apples iPad and the same will be the case for the iTV. The major players in the TV space are just that, major players, and aren’t going to walk away from there bread and butter like RIM did. Apple is entering a market where the fight will be fierce and gaining market share will be a true challenge.

Apple makes great products, I have some myself. Though before one can say that the stock price is going to infinity with conviction, we must consider all the factors. Some of those were brought up above, such as the pricing challenges and intense competition in Apples future. Many more challenges will surface in the future, as we know will tech companies, the future is coming quickly and continually staying a tech titan is nearly impossible.

“Our goal is to make the best devices in the world, not to be the biggest” – Steve Jobs

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