Apple T.V. is an incredibly innovative product. The idea is that this device will consolidate everything associated with video based entertainment while providing access to apps and much more. However, the concept seems to have hit a standstill as Apple points the finger at the cable companies and the cable companies respond by saying Apple bit off “more than they could chew”. Today, we’re going to look into the Apple T.V., what it’s expected to do, the problems between Apple and cable companies, and the investor reaction to the ordeal. So, we certainly have quite a bit to discuss!
What Is Apple T.V.?
Apple T.V. is a new set top box designed to consolidate all entertainment into one easy to manage device. With the new Apple T.V. users will be able to watch cable television, play games, access apps, watch movies, connect through social media, and more. The device even features a camera so that users can take live pictures and videos and upload them to the web right from their T.V.! To put it simply, Apple plans to release a device that will revolutionize the way we use our T.V.s!
So, What’s The Hold Up?
Unfortunately, there are a couple of issues that are prolonging the debut of the new Apple set top box. Here are the problems they have to get past…
- Licensing – Although Apple says cable companies are “dragging their feet”, there seems to be good reason for the delay. The cable companies and content creators are questioning whether or not Apple has the licensing needed to display the wide range of content types that cable companies are capable of providing.
- Comcast/Time Warner Cable Merger – Another cause for the delay is the coming merger between Comcast and Time Warner Cable. There’s quite a bit of legal red tape surrounding this merger. Essentially, the feds need to approve of the merger before it can happen. For the Apple T.V. concept to come to fruition, it will need to include the long awaited TWC Apple TV app. However, this can’t happen until the merger is complete.
The news of the delay in the revamped Apple T.V. broke Wednesday just before 12:00 PM. So, by looking at the Apple stock chart, we can get a feel for how investors reacted to the delay. Although Apple had a rocky start, by looking at their chart, it’s easy to define the difference between the rocky start to the day and the reaction investors had to the delay. Just before 12:00 PM, we watched Apple, stock prices start to slide; falling from $98.28 per share at 11:35 AM to $97.75 per share at 12:10 PM. However, we also saw a sharp increase following shortly after. So, all in all we can say that although investors aren’t incredibly happy about the delay, it’s not going to cause any major, long term effects.
What We Should Expect From Apple In The Near Future
Generally, when an asset releases bad news, we can expect a drop. The hard part is deciding how far down the value of the company will fall, and how long the company will feel the effects of the bad news. In this case, I think we’ve seen about it. Although Apple is projected to close down by about 0.23% today, I think that we can expect to see them start their general upward pace back up tomorrow. Although, this hiccup is something no one wanted to see, I don’t think Apple will be feeling the effects for too long.