According to a report by Concord Securities analyst Ming-Chi Kuo relayed by AppleInsider, Apple may not release an updated model of the Apple TV in the third quarter, instead focusing on software updates to extend the AirPlay features of the device and make it compatible with the upcoming next-generation iPhone. Earlier this month, AppleInsider reported they had been hearing rumors of a new HD+ format for movie content set to bring full 1080p capabilities to a version of the Apple TV. Such new Apple TV, according to “people familiar with the matter”, would run Apple’s latest A5 chip to bring the necessary horsepower to play 1080p movies without playback issues. However, if Ming-Chi Kuo’s industry checks are to be believed, it appears Apple may instead roll out new version of iOS for the Apple TV, rather than a hardware refresh.
Looking ahead to the second half of the year, Kuo said his industry checks have turned up no evidence that Apple plans push a hardware revision to the Apple TV into production during the third quarter. Instead, the Cupertino-based company will reportedly take a more measured approach to advancing the platform in 2011, relying instead on an Apple TV Software Update this fall that will allow devices such as the iPad 2 and upcoming iPhone 5 to beam their content to the big-screen.
Apple doesn’t disclose exact sales numbers of iPod touches and Apple TVs, but Ming-Chi Kuo believes the company sold approximately 480,000 units in the second quarter. In the past months, the second-generation Apple TV has proven to be a successful “hobby” for the company: whilst Tim Cook at the Q3 earnings call said they still don’t consider the Apple TV “another leg of the stool”, in the first three months of availability the Apple TV sold over 1 million units, with allegedly 2 million units placed by April 2011. Meanwhile, similar Internet-connected devices failed to capture the attention of the market partly because of non-competitive prices and lack of streaming features – whereas the Apple TV can stream movies and TV shows using iTunes, and can be integrated with iOS devices thanks to AirPlay. Apple is indeed baking a new feature into iOS 5 that will allow users to beam the full contents of an iPad’s screen to the Apple TV, thus making it an interesting solution for wireless gaming and business presentations. Most recently, Netflix CEO Reed Hastings said the Apple TV was “more important” for them as Netflix keeps expanding to new devices, and an experiment by Mac Mini Vault successfully managed to host a webpage on a jailbroken Apple TV 2nd gen.
