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Is Apple's Smart TV Stalled?

Recently, Reuters reported that Apple (NASDAQ: AAPL  ) has begun negotiations to acquire PrimeSense for $280 million. The Israeli chip developer possesses technology that allows machines to "see" in 3-D. Microsoft (NASDAQ: MSFT  ) relied on this technology in its development of the Xbox Kinect. It stands to reason that Apple is interested in this technology for use in its smart TV, but if Cupertino is just now negotiating, where does that leave development efforts?

In the following interview with the Fool's Alison Southwick, contributor Doug Ehrman discusses the possible implications of the acquisition rumor and the importance of Apple's smart TV.

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  • Report this Comment On July 27, 2013, at 11:03 AM, spakklal wrote:

    It is really stupid to assume what product Apple will come up with this fall. Tim Cook has been telling investors since the last earnings call that new products will be released only in the Fall.

    We know that Apple will be releasing the following Products:

    iTunes Radio

    iPhone 5S with IOS 7

    Mackbook Pro



    iPhone Lite

    Apple would prefer to consolidate their marketshare with the above mentioned products before they introduce innovative products for competitors to Copy.

    Investors will be best served for Apple to release Products only when it is ready.

    A line from a video at the recent WWDC: “If everyone is busy making everything, how can anyone perfect anything?”

    This is obviously directed at Samsung more than any other company.

    Samsung uses the shotgun approach to product development. They “squirt” every conceivable combination and variation of a product that can be imagined… And some people have been wrongly calling this “innovation”.

    The problem with wasting resources designing, developing, producing, and marketing, as many product variations as quickly as possible is that no single product gets the attention to detail and quality that it should receive.

    This is the problem with Samsung’s smartphones and tablets. The quality level is sub-par compared to its competitors’ products.

    Samsung can be compared to General Motors in the 1950′s and 60′s. Many models of cars were produced each year, and each year the design changed giving consumers the false impression that this year’s model was better than last year’s.

    Apple can be compared to BMW, whose cars don’t change design radically or quickly, but the quality and attention to detail is unsurpassed (primarily because the company’s resources are focused on those areas rather than on making design changes as quickly as possible.

    General Motors was highly successful with its “totally new car every year” strategy, but that success crumbled eventually when consumers started buying other cars that were higher quality and more efficient than the cars GM sold.

    If you ever wonder why the iPhone has consistently had higher quality and customer satisfaction ratings than any other phone, and why iPhone owners are much more likely to buy another iPhone in the future than users of other phones would repeat their purchase choices, it’s because Apple’s product development and production has a very different focus than those of competitors.

  • Report this Comment On July 27, 2013, at 11:22 AM, gskorich wrote:

    I'm not sure how things can be stalled that haven't been announced yet.

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