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.
There are rumors that Rogers Communications (RCI) and BCE (BCE) 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 AT&T (T) and Verizon (VZ) 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 Hulu and Netflix (NFLX) 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. Interested in more on Apple? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. --Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV