Smart TVs are televisions 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. Besides 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 projected to grow to more than 123 million shipments by 2014 (at a CAGR of 30%). 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 the 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. Furthermore, 33% of flat panel TVs sold in China in 2013 will be Internet capable.
DisplaySearch also forecasts that the connected TV market will become more fragmented and complex. A group of TVs are supposed to feature basic video-on-demand and appeal to consumers who expect TV to remain a passive experience. Those who want something more substantial will find interesting other TVs that offer configurable apps, 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 apps downloaded at the end of January 2012, is the segment leader, followed by Panasonic and LG.
However, the biggest shakeup in the TV industry will bring about the much-talked-about Apple TV. It promises to revolutionize television as soon as 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, perfectly synced with other Apple devices and with iCloud. Right now, Apple with its $99 Apple TV set-top box seems to be doing pretty 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 views Apple TV hardware as a 2013 event. According to estimates by 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 investment banking and securities group, does not expect the device to be called an iTV. He suggests the new TV could be called an “iPanel,” which may reflect its potential as a hub for games, media, and more. The iPanel name also follows the “iP” format of other Aplle 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 sales 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 be of superior quality and excellent design. The list of possible features 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, soon we will 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
Technology areas: Smart TV, connected TV, Smart TV apps, TV app development, software development