Apple Television Set Prototypes Reportedly 'In the Works'

Rumors of an Apple-branded television have been circulating for years, and now have revived after release of Steve Jobs’ authorized biography, where he claims that he finally “cracked” problem. Some analysts expect that Apple may release a new television set as soon as next year. Among the newly presented evidence is a claim that prototypes of the Apple television set are now "in the works".

- Based on Jan-11 meetings in Asia (not with component suppliers), we believe Apple is investing in manufacturing facilities and securing supply for LCD displays. These displays could range from 3.5" mobile displays to 50" television displays.

- More recently, in Sept-11 we met with a contact close to an Asian component supplier who indicated that prototypes of an Apple television are in the works.

Other evidence is several patents and patent applications filed by Apple that addressing the company's work into television-related technologies.  Our expectations from Apple TV include integration with iCloud that would provide access to iTunes Store video content.  Apple is believed could sell 1.4 million television sets at an average selling price of $1800 in 2012, ramping up to 4.3 million units by 2014 as costs drop to an average selling price of $1400.