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Apple TV: 5 Ways to Not Fail

Stocks in this article: AAPL GOOG RIMM

Apple story updated with analyst comments and Apple TV forecast.

NEW YORK ( TheStreet) -- Apple (AAPL) has climbed and conquered some big hills in tech, but if there's still a Mount Everest out there in consumer electronics, it has to be TV.

Earlier this summer at the AllThingsDigital conference, Steve Jobs talked about his company's failed attempts at bringing Apple TV to the masses: "The only way that's going to change is if you tear up the set top box, give it a new UI, and get it in front of consumers in a way they're going to want it," Jobs said.


It sounded to us like Jobs was gearing up for a new battle. And as rumors surfaced last week that Apple will hold some type of press or launch event in September, we're wondering if it has to do with Apple's continued foray into the living room.

Earlier today, a PiperJaffray analyst said that Apple will enter the internet TV market in 2012. "We continue to believe that Apple is well-positioned to enter the television market with a connected HDTV in the next 2-4 years along with full content services," said analyst Gene Munster in a note. "Apple has recently developed a data center in Maiden, N.C. that we believe could serve at the hub of a cloud-based service for iTunes video."

Munster said that television could add 3% to Apple's revenue in 2012 and 7% to 2013.

To that end, we'd like to reiterate some suggestions that Apple has no doubt considered in its bold reattack on TV.

No. 5 The box isn't the problem

Steve Jobs is wrong about people not wanting to buy another box. People just want the right box. A set-top box is a computer that runs applications to manage your viewing. TV programming is a jumble of information. Throw in DVR features and the Internet, and you have a very complex system to control.

Apple is, at its core, a computer maker. You know that all this fuss about the failure of the box is just a set up for a better box. What Apple needs to do: Make a box good enough to allow people to stop caring about the box.

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