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Apr 5 2007, 11:45 AM EDT (current) jonb 56 words added
Apr 4 2007, 11:54 PM EDT jonb 21 words added, 10 words deleted

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Apple has a knack for taking existing products and making them better. Why not the television set itself?

The clues are all there, and it doesn't take a tin foil hat to think Apple may be moving in this direction:

"We Prefer To Control the Whole Widget"

Whether it's the iTunes/iPod or Mac OS X/Mac, Steve Jobs talks endlessly about how they work the best when they control the "whole widget". Supporting every TV on the market is messy. Steve would much rather sell you a $2000 HDTV set with the Apple TV built in, then he can put everything into one remote and one interface.

Apple Knows a Thing or Two About Displays

Since their inception, Apple has considered itself a full-service computer shop, meaning they know how to make the displays as well as the computers themselves. Apple displays have a solid reputation for their quality, although they also have a well-deserved reputation for being expensive. The high-margin world of high-end HDTVs is perfect for a high-margin company like Apple.

Growth Has To Come From Somewhere

Apple's operating system marketshare isn't likely to break 10% any time soon, and everyone already has an iPod. For Apple to keep up its growth trajectory, it needs to discover and conquer new markets. They've already made the iPod HiFi for audio, so it's reasonable to expect a similar product for video - a television set.

It's Just an iMac With a TV Tuner

The iMac already exists in this form factor. It has a 23 inch widescreen, running OS X, with a tiny computer tucked into the back. Apple can throw a TV card in it, make it black, and roll out a line of 30, 40, and 50 inch televisions.

Why Not?

People often float ideas that Apple would be a fool to follow. Let Mac OS X run on Dells? Of course not, Apple makes all its money on its hardware. Sell laptops for $300? That would wreck their brand and they don't seem to have any trouble selling even at higher levels. But the television idea doesn't have any similar downside: Apple would be able to leverage its current strengths (digital media) in an area it knows well (displays) and recognize a high profit margin.

And it would set up their next step: becoming the best source on the planet for movies, tv shows, and music.