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Innovation in the Works, Apple Is Set to Soar Again

NEW YORK ( TheStreet) -- Harvard Business School professor Clayton Christensen is the architect of and the world's foremost authority on disruptive innovation. On Friday he re-tweeted Todd Sherman's forecast that Apple's (AAPL - Get Report) app-enabled television could be the biggest disruption in the video game space since the Wii enlarged the market.

The tweet links to M.G. Siegler's Feb. 14 piece in TechCrunch that reiterates the case made by Xbox team founder Nat Brown who commented, "Apple, if it chooses to do so, will simply kill Playstation, Wii-U and Xbox by introducing an open 30%-cut app/game ecosystem for Apple TV. I already make a lot of money on iOS . . . I will be the first to write apps for Apple TV when I can and I know I'll make money."

Many have questioned the relevance of an Apple HDTV as they observe the commoditization of the market. However, Apple's software solutions seem to be enough to differentiate Apple's offering in terms of disruptive innovation.

The potential of App Store gaming is only one reason for consumers to buy the product. In prior posts at EconomicTiming.com, we've speculated that Apple might be the first to fix the archaic living room infrastructure that contains multiple remote controls for multiple devices unable to communicate with one another.

In an interview with NBC's Brian Williams, Tim Cook mentioned that when he goes into his living room and turns on the TV he feels like he's gone back in time 20 to 30 years. A universal remote application that enables an iPad, iPad mini or an iPhone to control all living room technology would fill a major need.

As a third component to Apple's potential for disruptive innovation, it is widely known that cable and satellite providers charge consumers for large quantities of content that are never viewed. If Apple allows users to cut the cord and purchase television content in an a la carte method, the cost savings will provide incentive to purchase the product.

It's interesting that Clayton Christensen would endorse Apple's potential for disruptive innovation at a time when investors are shunning the stock. Perhaps Christensen sees an opportunity that others are missing.
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