Apple can make the most beautiful and interactive television set, but if it can't provide content to users, then it will be worthless.
However, many expect Apple will deliver on the content front, and the television set will be a meaningful contributor to the tech giant's future earnings. "We believe the product could contribute about $5.40 of EPS or 11% of our FY13 EPS estimate of $48.46," noted Barclays Capital's Reitzes, in a recent note.
(BCE - Get Report)
already have an Apple television set in their hands, and are reportedly working with the Cupertino, Calif.-based firm on partnerships around the device.
Apple is reportedly open to working with multiple service providers around the globe, as it gets ready to unveil its TV offering. Jefferies analyst Peter Misek, for example, believes Apple could work with the aforementioned Canadian broadband providers, as well as
in the United States. "Partnerships with carriers/MSOs are possible/likely (e.g., AT&T, VZ, Bell, Rogers). We believe Apple thinks it can win on a level playing field for content," the analyst noted, in a recent research report. Misek rates Apple at buy with a $599 price target.
The Jefferies analyst also believes that Apple will provide access to a broader range of integrated content. Some have speculated that companies such as
(NFLX - Get Report)
would be heavily integrated as well.
No matter what the "iTV" has in it, looks like, or who Apple works with, one thing is certain. The rumors will only increase in frequency as the product launch gets closer.
Apple shares are higher Tuesday, up 1% to $468.46.
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Written by Chris Ciaccia in New York
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