Why Apple needs to make a television, not just a box

Hi everyone,

Rumors have been on-and-off for the last several years on Apple "reinventing" television, but their current efforts with the AppleTV hasn't made it a hit product like the iPhone or iPad. Thinking it through, I believe that the only way Apple is going to really innovate here is by making the entire TV set because:

  • there are just too many boxes on the market. Too cluttered.
  • Apple can innovate a lot more when they control the entire set (like add motion sensors, iSight camera, ability to turn the TV on/off with your iPhone, etc.)
  • Apple would rather make 50% margins on a $1,000 set with additional cash through iTunes purchases than a $99 box.

I'm not saying they should not sell a set-top box as well, as they would appeal to those people who either want to keep compatibility with their old boxes and cable plans, or simply don't have much space in their house for more than 1 huge screen. However, making television set is game changing, another dusty set-top box isn’t.

I've laid out all my points and explanations here: http://gizmocube.com/blog/why-apple-needs-to-make-a-television-not-just-a-box/

What do you guys think?