This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why a Television Set Would Do Wonders for Apple's Image

By: Rocco Pendola | 06/30/14 - 08:00 AM EDT

Stocks in this article: AAPL

NEW YORK (TheStreet) -- As the tech media clamors (albeit inanely) for a cheap iPhone and Macbook and iMac prices continue to drop, Apple (AAPL) better start minding its image. That might not seem important amidst the company's short-term dominance -- particularly with respect to mindshare -- but it's more than material over the long haul.

And the timing couldn't be better for Apple to reinvigorate itself as a pseudo-luxury brand.

iPhone 6 is about to obliterate Android, giving Apple its first meaningful marketshare story -- without even trying -- since iPad. So it has got that part of the equation covered. Concurrently, it needs to work on the high-end portion of the proposition.

As I have noted numerous times over the last couple years, Apple can start with its third-party retail relationships. But it can also introduce a new product that's aspirational. One Apple prices at a true premium and inspires iOS and Mac lovers to save their pennies to tie together the ultimate personal and professional digital ecosystem.

Short-term none of this matters. Because, whether I'm right or wrong about the fate of iWatch, iPhone 6 will elevate Apple's mindshare and marketshare position. We'll hear all about it on the company's Q4 holiday period earnings conference call in January 2015. I'm next to certain that call will be the most incredible one Apple has ever hosted.

But Apple has to think beyond iPhone 6. Beyond knocking off Android, which isn't even formidable competition in the first place. Apple needs to make a decision with respect to where it situates itself with consumers vis-a-vis forthcoming new products.

Do you want to continue the trend of hawking your junk at Walmart (WMT)? Or do you want to recapture the notion of exclusivity? I vote for the latter.

While, on one hand, it makes perfect sense to achieve ubiquity through almost universally accessible products, you've got to moderate that by making real, to some extent, the myth that Apple is a high-end luxury brand.

There's no better way to start than in home entertainment. Work Beats Electronics into the mix and crank out a truly disruptive all-in-one television/set top box. Price it for a couple grand and watch the people swoon. That's what I'm talking about Tim Cook! Defending at least a little bit of high-end turf will ensure the Apple allure doesn't dilute and thus wear off.

--Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a full-time columnist for TheStreet. He lives in Santa Monica. Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.

Markets

DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

Rocco's Tweets

Brokerage Partners

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
Real Money Pro

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Trifecta Stocks

Trifecta Stocks analyzes over 4,000 equities weekly to find the elite 1% of stocks that pass rigorous quantitative, fundamental and technical tests.

Product Features:
  • Model portfolio
  • Trade alerts
  • Recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
Stocks Under $10

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Dividend Stock Advisor

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Breakout Stocks

Bryan Ashenberg, using sophisticated stock screening and fundamental research, identifies potentially explosive small and mid-cap stocks.

Product Features:
  • Model portfolio
  • Small-cap and mid-cap focus
  • Intraday trade alerts
  • Weekly roundups
Options Profits

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Top Rated Stocks Top Rated Funds Top Rated ETFs