ANALYST: APPLE LIKELY TO BEGIN MANUFACTURING TV SETS

Apple computer, which already makes numerous devices that can be hooked up to television sets, may introduce a television set of its own by the end of the year, according to Ticonderoga Securities analyst Brian White. AppleInsider.com cited a note to investors from White saying that Apple is about to go into production on a new kind of “smart” TV. “Our research suggests this smart TV would go well beyond the miniature $99 second-generation Apple TV that the company released last fall and provide a full-blown TV product for consumers,” White said. But Time magazine tech writer Jared Newman expressed skepticism about the report, saying, “Apple sees the television hardware market as too risky. The profit margins are slim, and prices are always falling. Apple products, by contrast, are high-profit, and prices rarely drop.” However, CNET News is forecasting that Apple may combine the TV with a subscription video service. Other writers have noted that Apple has barely exploited its close relationship with Disney, where Apple chairman Steve Jobs is its largest shareholder, and that an online “channel” featuring Disney movies, ABC television shows, and ESPN sports coverage could easily become the backbone of a lucrative streaming video service.