Apple Inc. (NASDAQ:AAPL) is holding an event at Cupertino, California headquarters today, but is there going to be any news about the most sought after commodity even before its birth, the all important Apple TV? On Bloomberg, Marc Andreessen, the co-author of the famous web browser Mosaic and co-founder of venture capital firm Andreessen Horowitz shared his thoughts on Apple Inc. (NASDAQ:AAPL)’s reservations in embarking on the TV mission.
While many investors think that there is a race going on regarding which giant tech company is going to release its TV first, Andreessen was convinced that the business’ low margins make it an unattractive investment for Apple Inc. (NASDAQ:AAPL).
“[…] I think that Apple Inc. (NASDAQ:AAPL) has figured out that new sales cycles for TVs are like 5 years, or years, or 10 years, and so what I think that means is that it is just not that attractive relative to the smart phone to build something that people don’t, you know, that they want to buy a new one every year […],” said Andreessen.
Andreessen might have been underestimating the value of a television that has an operating system of its own. Moreover, this can lead to additional streams of revenue apart from just selling the product. A TV that has the ability to record your viewing preferences is going to be worth a lot in the advertisement industry.
Apple Inc. (NASDAQ:AAPL) could be building advertisement tools and thus the company could be expanding their business in a totally new direction. A TV is watched by billions every day and any technological device which has that kind of following is worth a lot. Facebook Inc (NASDAQ:FB)’s story is just one example of this.
Apple Inc. (NASDAQ:AAPL) is currently down -1.74% in pre-market trading and stands at $95.8.
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