What Does Comcast Want Out of Apple?

With the reported talks between Apple  (NASDAQ: AAPL  ) and Comcast  (NASDAQ: CMCSA  ) about a potential partnership, what does Comcast gain from the rumored deal? There may be some seeming similarities with Apple's initial iPhone partnership with AT&T years ago, but there are many notable differences. Cable service is not metered like cellular data, but cable is also seeing the cord-cutting trend continue. If Apple can mitigate cord-cutting with its brand strength and improved experience, Comcast could benefit from higher retention.

Additionally, Apple may sell its set-top boxes directly to consumers instead of the current model where customers lease set-top boxes from cable providers. Meanwhile, Apple may risk tarnishing its brand by association. Comcast has quite a poor reputation for customer service, which contrasts with Apple's strong reputation. There has also been a lot of debate around net neutrality, which could further complicate this deal.

In this segment of Tech Teardown, Erin Kennedy discusses Apple and Comcast with Evan Niu, CFA, our tech and telecom bureau chief.

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