Apple TV 2.0

We’ve been getting a TON of recon on the Apple TV, and we know it’s not so sexy as to talk about tablets and so forth, but feel like this is worth reporting on nevertheless…you can be the judge…

Let’s paint a picture, shall we? See if you recognize this one:

1. Introduce a new device and price it at a premium (since you know you’ll sell as many as you can make at first, anyway)…
2. Cut the price once R&D has been recouped…
3. Once the market penetration has started, introduce new features, services, etc. tied to the platform…
4. Profit (okay, so it’s a four step instead of three step plan like in South Park)

Do you remember the last time we saw that formula? Yep, the iPod…which lead to the iTunes store, which lead to complete and total market domination by Apple. Recon looking forward to Apple TV 2.0 suggests a similar path in place (only this is a five-step version of the above):

1. Introduce Apple TV, sell it for $300 (already done)
2. Cut the price for Christmas 2007 to $199 and MOVE UNITS
3. Macworld 2008 – Introduce a firmware upgrade that allows direct purchase of content via iTunes (no computer needed)…also other video sources, like YouTube…and also video games (complete with a wireless controller option)
4. Introduce one more upgrade that turns your very large install base into full fledged IP TV users…tied not just to things like iTunes and YouTube, but also directly to cable providers (and potentially content providers themselves, thus cutting the cable folks right out of the business)…thus biting Microsoft in the @$$ again while they were trying to get their act together on IPTV with whatever BS they are doing with their mishmash of approaches…
5. Profit & completely dominate this market, too.

The end? Probably not, there is even more up Steve’s sleeve than this, but we wanted to get this out there for everyone’s knowledge…to be clear, this is a combination of tips and reports, along with our usual commentary and analysis. Do you see it going another way? Sound off in the comments or applerecon@gmail.com.

And as always, don’t forget to give us a Digg!