
Does Carl Icahn know something for certain about a product in Apple's pipeline that the rest of us only think is still a rumor for the time being?
You would have to think a man in possession of 53 million shares of AAPL would be well informed, right? And while we're not saying he has insider info by any means, we are saying Icahn may simply be in a better position to understand why Apple might enter a particular new product category.
Based on the prominent investor's open letter to Apple CEO Tim Cook on Thursday, one could assume that Icahn believes it's logical to expect the long-rumored UltraHD Apple TV set within the next 12-24 months.
"As we highlighted in our previous letter," Icahn wrote Thursday, "we believe UltraHD’s (ultra-high-definition television) superior picture quality in comparison to regular HD will drive a major TV replacement cycle as the price gap between them narrows. It should also be noted that Reed Hastings, CEO of Netflix, has referenced UltraHD as a major catalyst for Netflix going forward, and while this is true for Netflix, we believe it is also true for Apple. Against the backdrop of this replacement cycle, FY 2016 represents an opportune time to introduce an UltraHD TV set."
Icahn even went as far as to indicate that Apple is sitting on another potential content/services goldmine if the UltraHD Apple TV set comes to fruition.
"Apple could sell UltraHD movies and shows through iTunes over the internet to the UltraHD TV since cable companies will likely be slow to upgrade their expensive linear infrastructure, as one example of an incremental opportunity," Icahn proposes. "Another is the user interface of television, which you humorously (but accurately, in our opinion) described as being 'stuck in the 1970s.'"
You can be sure the rumor mill will have fun with these assessments and predictions well into the new year. But whether or not we ultimately see the UltraHD Apple TV set is another matter altogether.
Source: Market Watch
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