The chatter about an Apple TV set has returned but we still don't have consensus. Rumors are all over the place whether talking about sizes, number of models, release date, features, or (especially) price.
So what do we know? We (think we) know that Apple is interested in making a physical television set. Most rumours seem to agree that this new set will come in 2 sizes.
That's about it.
There's much talk about these sets coming standard with 4K displays. But that would assure the price starting at over $2000 - way out of the 'affordable' price range for most of the world.
If this new Apple TV Set is a central part of Apple's living room strategy going forward, how do we make it attractive to the masses?
The television market is primarily made up of two different buyers. There are those who won't pay more than $600-700 on a television. And there are those who want the best television out there are spend $1500-3500 without hesitation. Go to your local BestBuy or Costco and check out the television aisle, you'll find most of the TV sets fall in either range.
What can Apple make for $699? A lot, actually. To start, Apple could put the internals of the current-generation Apple TV into a television with a decent LED-LCD display. This is not a 4K television but a 1080p display. Add Siri and what ever Kinect-like motion feature they may be planning and you've got yourself a damn good product.
What can Apple make for $2499? Even more. They can take what I mentioned above, but with a stunning 4K display. This is perfect for that high-end market and will have a great profit margin.
I'm going to predict now that the low-end set will have a smaller display. The pitch to customers will be that if they want the largest available size, they will have to upgrade to the high-end model.
This approach isn't new. In fact, this is how Apple already sells Macs, iPads, iPods, and now, with the introduction of the iPhone 5c, the iPhone. If you're wondering what Apple might do in future product categories regarding pricing and models, look no further than the products it offers today.