There has been a lot of speculation that Apple is going to eventually release a television set, and Piper Jaffray analyst Gene Munster believes that the uncertainty has been taken out of the product. It is now a matter of when, rather than if, Apple will launch the product, Munster explained in a research note.
"We stand by our previously stated timeline of unveiling the TV late this year with a launch in the first half of 2013 (6 months following the unveiling)," Munster wrote. He rates Apple shares "overweight" with a $910 price target. Apple's decision to enter the television market could increase revenue between 4% and 8% in 2013, assuming a $1,750 retail price, Munster notes.
Apple has repeatedly said that it will not do something unless it can do it well. The Cupertino, Calif.-based technology giant appears focused on revolutionizing the television industry, and how consumers interact with their living room, Munster noted.The connected TV market is around 110 million units, according to Piper Jaffray. Munster believes that Apple could capture between 5% and 10% of the market in its first year, so the next six months for Apple are incredibly important. He noted that the iPhone captured similar market share when it was first released, with Apple selling 13.7 million units in its first full year.
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