Wednesday, October 10, 2012

Apple Inc. (NASDAQ:AAPL): The next big thing could be a TV remote

The speculation surrounding the iPad Mini has drowned out other possible products that Apple Inc.(NASDAQ:AAPL) is rumoured to be working on.

Before the launch of the iPhone 5, there was a lot of buzz about Apple's expected foray into manufacture of television sets. However, now Barclays has come out with a report that says that the next big thing from Apple is not a TV but a TV remote.

Barclays analyst Ben Reitzes shared the research note with AppleInsider, which has a report on it. According to Reitzes - Apple has more control to expand the total addressable market (TAM) for its mobile products, like the iPhone and iPad, than its competitors, and therefore has the ability to offer innovative software and hardware features at accessible prices.

"We feel one of the best ways to increase the iOS device TAM is by expanding use cases so that every home could use an iOS device as a TV remote," Reitzes wrote in his note.

Taking it a bit further he said that Apple's iPad was the most appropriate device for expanding the total addressable market though it would have to be improved from its current levels through software and allow it to control more tasks.

Reitzes may have a point here, because we can safely say that the iPad has been single-handedly responsible for taking over the tablet PC market and driving more people away from traditional PCs to adopting mobile devices.

According to the Barclay analyst, the iPad Mini with its smaller screen format could be one of the first to expand TAM by becoming a TV remote.

"We believe the 7” screen on iPad mini could be used for traditional content consumption such as reading books or watching movies, but Apple may have bigger plans for this device over time," Reitzes said.

"We believe the big secret about Apple’s TV strategy is not the TV itself – it’s about selling the remotes."

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