While Sony Corporation (ADR) (NYSE:SNE)'s content delivery system is in its infancy, Apple's iTunes is well developed. And the content is out there already, since most digital cinematography is done in 4K or other even higher resolution formats. Since Apple Inc. (NASDAQ:AAPL)already has established relationships with content providers who trust Apple's digital rights management, getting hold of the 4K content shouldn't be difficult.
The release of a 4K iTV, along with concomitant iTunes 4K content, could be a huge catalyst for Apple's stock by convincing investors that indeed, innovation isn't dead at Apple. But here timing is critical, since the window of opportunity caused by the disarray in the traditional media distribution networks won't last forever. Apple Inc. (NASDAQ:AAPL)needs to get the iTV into Apple stores in time for the Holiday shopping season. If Apple can manage this, iTV will be a hit and Apple shares will be pushing past the median 12 month projection of $525/share by the end of the year. Yes, I've become an Apple bull again.
Mark Hibben has a position in Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.
The article Apple's 4K Television Opportunity
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