Latest trends in Smart TV: could Apple win?

Smart TVs are TVs that can retrieve content from the Internet and offer built-in apps for streaming music and movies, apps for social media, apps for news, weather, sports, games, YouTube, and more. Apart from the use of apps, one of the most attractive factors for tech-savvy consumers is voice activation technology to control TVs.

According to DisplaySearch, a leading provider of trusted information on display-related industries, connected TVs are forecast to grow to more than 123 million shipments in 2014 (at a 30% CAGR). The market is now developing beyond mature regions like Western Europe and Japan. Emerging markets play an important role in this growth. With improvements in broadband infrastructure, the adoption of connected TVs is a natural next step in TV feature innovation. Eastern Europe is expected to grow from 2.5 million connected TVs shipped in 2010 to more than 10 million in 2014. Additionally, 33% of flat-panel TVs sold in China in 2013 will be Internet-enabled.

DisplaySearch also forecasts that the connected TV market will become more fragmented and more complex. A group of televisions is supposed to feature basic video on demand and appeal to consumers who expect television to remain a passive experience. Those who want something more substantial will find interesting other TVs that offer configurable applications, sophisticated search and navigation engines, as well as advanced user interfaces.

Major contemporary connected TV platforms include Samsung Smart TV, LG Smart TV, Mitsubishi Stream TV, Panasonic Viera Connect, Sony Bravia, Toshiba NetTV, Apple TV, Google TV, TiVo, Liberty Global’s Horizon, and Yahoo! Connected television. Samsung, with around 20 million downloaded apps at the end of January 2012, is the segment leader, followed by Panasonic and LG.

However, the biggest shakeup in the television industry will bring about the much-talked about Apple TV. It promises to revolutionize television like once the iPad hits the market. Steve Jobs was quoted in his official biography as saying that he “finally cracked the case” for an integrated TV. The new iTV (assumed name) is expected to be completely easy to use, seamlessly synced with other Apple devices and with iCloud. Right now, Apple with its $99 Apple TV set-top box seems to be doing very well, with 2.8 million units sold in 2011.

We constantly hear rumors related to the expected Apple product, its features, price and release date. CLSA Group sees the Apple TV hardware as a 2013 event. According to estimates from ITG Industry Investment Research, the new iTV could increase the company’s market capitalization by 10%, or $60 billion. Apple, already the most valuable company in the world, has recently reached the $600 billion level.

Analyst Peter Misek of Jefferies, a global securities and investment banking group, doesn’t expect the device to be called iTV. He suggests the new TV could be called “iPanel,” which may reflect its potential as a hub for games, media and more. The iPanel name also follows the “iP” format of other Apple products, such as the iPod, iPhone, and iPad. However, it is only an assumption of the analyst. Misek expects an Apple TV to have an average selling price of $1,250.

The success of Apple products like the iPod, iPhone, and iPad has a lot to do with design. The iTV (let’s take this name) is supposed to have superior quality and excellent design. The list of possible functions includes the following:

• An aluminum construction;
• FaceTime video calls;
• Siri-based remote voice control;
• 42-inch HD screen;
• iOS operating system;
• iCloud support;
• Control from iPhone or iPad;
• Access to Netflix, YouTube, Flickr, etc. (same as existing Apple TV);
• Content sharing and media streaming from Apple devices.

Obviously, we will soon witness the appearance of a new smart TV from Apple that will bring new changes to the television market. And yes, Apple can win!

Industries and Technological Areas:

Industries: media, television

Technological areas: Smart TV, connected TV, Smart TV applications, TV application development, software development