©2012 by EliNext Group

Latest Trends in Smart TV. Could Apple Win?

The pace of technological change is

accelerating, and the ritual of updating your

home TV every 5-8 years is getting obsolete.

Smart TVs (or connected TVs) are all the rage

these days. They bring the whole new world of

instant entertainment.

©2012 by EliNext Group

Smart TVs are television sets that can retrieve

content from the Internet and offer built-in

applications for streaming music and movies, apps

for social networking, apps for news, weather,

sports, games, YouTube and more. In addition to

using apps, one of the most appealing factors for

tech-savvy consumers is voice activation technology

to control TV sets.

According to DisplaySearch, a leading provider of

reliable information about the display-related

industries, connected TVs are forecast to grow to

over 123 million shipments in 2014 (at a 30%

compound annual growth rate). The market is now

developing beyond mature regions like Western

Europe and Japan. Emerging markets play a major

role in this growth. With the improvements in the

broadband infrastructure, the adoption of connected

©2012 by EliNext Group

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 over 10 million in

2014. In addition to that, 33% of flat panel TVs sold

in China in 2013 will have the Internet capability.

DisplaySearch also forecasts that the connected TV

market will become fragmented and increase in

complexity. One group of TV sets 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 TV sets offering

configurable apps, sophisticated search and

navigation engines, as well as advanced user

interfaces.

The main contemporary connected TV platforms

include Samsung Smart TV, LG Smart TV, Mitsubishi

Stream TV, Panasonic Viera Connect, Sony Bravia,

©2012 by EliNext Group

Toshiba NetTV, Apple TV, Google TV, TiVo, Liberty

Global’s Horizon and Yahoo! Connected TV. Samsung,

with around 20 million apps downloaded by the end

of January 2012, is the segment leader, followed by

Panasonic and LG.

However, the biggest shake-up in the television

industry is going to cause Apple’s much-talked-of TV

set. It promises to revolutionize television like once

the iPad hit the market. Steve Jobs was quoted in his

official biography saying that he “finally cracked the

case” of an integrated TV. The new iTV (alleged

name) is expected to be completely easy to use,

seamlessly synced with other Apple’s devices and

with the iCloud. At the moment Apple with its $99

set-top box Apple TV seems to be doing very well,

with 2.8 million units sold in 2011.

We are constantly hearing rumors related to the

©2012 by EliNext Group

expected Apple’s product, its features, price, and

release date. CLSA Group views Apple TV hardware

as a 2013 event. According to the estimations of ITG

Industry Investment Research, the new iTV set could

increase the company's market cap by 10%, or $60

billion. Apple, already the world's most valuable

company, has recently hit the $600 billion level.

Analyst Peter Misek from Jefferies, a global securities

and investment banking group, doesn’t expect the

device to be called iTV. He suggests the new

television could be called “iPanel” which can reflect

its potential as a hub for gaming, media and more.

The iPanel name also follows the “iP” format of other

Aplle’s products, like the iPod, iPhone and the iPad.

However, it is just a guess from the analyst. Misek

expects that an Apple television will have a $1,250

average selling price.

The success of Apple’s products, like the iPod, the

©2012 by EliNext Group

iPhone, and iPad, are much about the design. The

iTV (let’s take this name) is supposed to have

superior quality and excellent design. The list of

possible features includes the following ones:

• An aluminum construction;

• FaceTime video calling;

• Siri-based remote voice control;

• 42-inch HD screen;

• iOS operating system;

• iCloud support;

• Control from the iPhone or the iPad;

• Access to Netflix, YouTube, Flickr, etc. (same as

on the existing Apple TV);

• Content sharing and media streaming from

Apple’s devices.

Obviously, we’ll soon witness the appearance of a

new smart TV from Apple that is going to bring new

changes to the TV market. And, yes, Apple may win!

©2012 by EliNext Group

Industries and Technology Areas:

Industries: mass media, television

Technology Areas: Smart TV, connected TV, Smart

TV applications, TV application development,

software development

©2012 by EliNext Group

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