Apple Engineers Reportedly Pessimistic About Apple's Living Room Hardware Strategy

Apple's living room hardware strategy remains poorly defined and lacks a coherent vision, with engineers allegedly pessimistic about the product line, according to a new report.

apple tv 4k arcade
This year the Apple TV got an iterative update with a redesigned Siri Remote, while the HomePod was discontinued. Apple is now said to be developing a combined HomePod-Apple TV device with a built-in screen and FaceTime camera.

In his latest "Power On" newsletter, however, Bloomberg journalist Mark Gurman says that Apple engineers have personally expressed concerns to him about the direction of Apple's living room hardware strategy.

Despite the obvious benefits of an ‌Apple TV‌ for users invested in Apple's ecosystem, Gurman opines that the set-top box is largely failing in a market dominated by cheaper alternatives from the likes of Amazon and Roku, and that Apple needs to introduce a more competitively priced stick-like ‌Apple TV‌ or offer more features if it wants to stay relevant in the living room.

However, "as of now, it's hard to believe that will happen soon," claims Gurman, "especially with Apple engineers telling me that the company doesn't have a strong living room hardware strategy and that there isn't much internal optimism."

Gurman points out that the ‌Apple TV‌ software has gone through more interface redesigns that perhaps any other Apple product, and yet still it has failed to crack the market. Meanwhile, Apple's combined Apple TV-HomePod device remains on schedule for release around 2023.

If that doesn't go well, Gurman suggests "it might be time for Apple to consider putting the ‌Apple TV‌ on the same shelf as other living room products like the iPod HiFi and high-end ‌HomePod‌."

Related Roundups: Apple TV, HomePod

Top Rated Comments

4jasontv Avatar
31 months ago

There really isn't a benefit to apple tv over any competitors
Except quality.
Score: 96 Votes (Like | Disagree)
cmaier Avatar
31 months ago
Love my Apple TV’s. The built in internet connectivity on my LG tv is terrible, doesn’t get updates after a year or two, never works quite right, constantly is bugging me with unwanted pop ups, and likely tries to send data about everything I watch home (pi-hole FTW).
Score: 68 Votes (Like | Disagree)
Lounge vibes 05 Avatar
31 months ago
Apple has been trying to crack the living room since 2006.
They tried it with the iPod hi-fi, and that failed for being overpriced.
They tried it with the first generation Apple TV, and that failed for being extremely overpriced, and also just being basically a hard drive for your TV that you couldn’t stream with, while streaming was becoming the new big thing.
With the Apple TV second and third generation, they were moving in the right direction. It was $99 so it wasn’t that expensive, it’s supported streaming, and it was extremely easy to use. But again, Apple was stubborn and didn’t open it to third-party apps, so it didn’t support everything, and it didn’t start supporting everything until super late in the game.
By 2015 when Apple decided to finally add third-party app support, they also decided to jack up the Apple TV‘s price and ruin the remote, so that didn’t help.
And now they’re stuck in a situation where the cheapest Apple TV that was released almost 6 years ago is still being sold for $149 whereas you can get a Google Chromecast for as low as like 20 bucks.
Sure, the Apple TV has a nice user interface and it’s easy to use and I love my Apple TV, but that’s not enough reason for anyone else to buy one.
Now I completely disagree with Mark that the solution might be to just discontinued the Apple TV. Even if the Apple TV will never, ever dominate, I still think that there’s a small percentage of people who absolutely love their Apple TV, and I would hate to see Apple just completely leave them in the dark.
But I don’t think that the strategy of introducing an extremely expensive home theater set up with a video camera and a $350 speaker all built-in is going to help their situation. That thing is going to be like $500, and have tons of cool features that most people won’t be able to justify forking over the money for. FaceTiming on the TV sounds like a cool thing, until it’s not.
It would be cool every once in a while for holidays and such, but am I going to want to FaceTime on my TV every single day? No. Am I going to want to handover $500 to be able to FaceTime on my TV? Absolutely not.
They should be working on a way to get the current Apple TV down in price. There is absolutely no justification for being $179 other than the ease-of-use, and that’s not good enough.
The 2015 Apple TV needs to go away, and they need to find someway to drop the current Apple TV in price. Even $129 would be better than $179, but if they could get it down to that old $99 price point, and get a good marketing strategy behind it involving the HomePod mini, AirPlay and enough crossovers, I think that would help a lot
Score: 57 Votes (Like | Disagree)
Khedron Avatar
31 months ago
“Despite the obvious benefits of an Apple TV for users invested in Apple's ecosystem”

How about the more obvious absence of benefits?

1. Buy an iPhone taking 4K videos.
2. Buy a 2TB iCloud subscription to store and sync your videos.
3. Buy an Apple TV 4K.
4. Watch your videos in 720p on your 60” 4K screen.
5. ???
6. Wonder why this thing isn’t selling so well.
Score: 55 Votes (Like | Disagree)
_Spinn_ Avatar
31 months ago
It is the same problem the HomePod has. A premium product in a commodity market. Everyone gets free or subsidized products from the competition.
Score: 50 Votes (Like | Disagree)
turbineseaplane Avatar
31 months ago
I'm with the engineers.
Given what most of us all do with our boxes, the unit needs to be WAY less expensive.

An HDMI stick version with remote for $69/$79 would be about right (when accounting for some Apple tax)

Have a cheap stick + remote for those who mostly just "watch stuff" - and then have something more $199-$299 for gaming focused or interested users and include a remote and a controller.
Score: 47 Votes (Like | Disagree)

Popular Stories

iPhone 15 General Feature Black

New iOS Features Coming in 2024 for Messages, Apple Music, and More

Thursday December 28, 2023 7:30 am PST by
2024 is just a few days away, and there are many iOS 17 and iOS 18 features that are expected to launch throughout the year. Below, we have recapped new iOS features expected in 2024, including Stolen Device Protection, collaborative Apple Music playlists, AirPlay on hotel room TVs, app sideloading in the EU, next-generation CarPlay, roadside assistance via satellite outside of the U.S., RCS ...
iOS 17

iOS 17.3 Will Add These Two Useful Features to Your iPhone

Sunday December 24, 2023 8:59 am PST by
Apple released the first beta of iOS 17.3 earlier this month, and the upcoming software update includes two new features so far. iOS 17.3 will likely be released in January like iOS 16.3 and iOS 15.3 were, but February is also a possibility if testing is prolonged. Below, we provide additional details about the new features in iOS 17.3 so far. Stolen Device Protection Earlier this...
iPhone 17 Five Features Header

iPhone 17: Five Features Apple Plans to Save for 2025

Thursday December 28, 2023 2:00 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
Mac Gaming

Apple Discusses Push Towards High-End Mac Gaming in New Interview

Thursday December 28, 2023 6:19 am PST by
Inverse's Raymond Wong today published an in-depth overview of Apple's increasing push towards high-end gaming on the Mac. The story includes commentary from Apple marketing managers Gordon Keppel and Leland Martin. One of the biggest reasons that gaming has improved on the Mac in recent years is the switch from Intel processors to Apple silicon, resulting in MacBooks providing...
Apple Watch Series 9

Apple Watch Series 9 and Ultra 2 Available in Apple Stores Starting Today, Online Sales to Resume Tomorrow

Wednesday December 27, 2023 2:28 pm PST by
Apple Watch Series 9 and the Apple Watch Ultra 2 are back in some of Apple's retail stores in the United States today, according to Bloomberg's Mark Gurman. Select stores will have availability today, while all stores will have the Apple Watch models back in stock by December 30. Online sales of the devices are set to resume tomorrow by 12:00 p.m. Pacific Time. Apple is able to begin selling ...
iPhone 15 Blue Three Quarters Perspective Camera Closeup Feature

6 Essential iPhone Camera Tips for Taking Great Photos

Tuesday December 26, 2023 3:00 am PST by
Apple's iPhones include several headline camera features that are worth using, such as Portrait Mode and Photographic Styles. But if all you want to use is the standard photo mode, there are still several tools and settings that can improve the composition of your pictures and help you capture the perfect shot using more traditional techniques. Whether you are the owner of a new iPhone or a...
Apple Watch Series 9

Apple Watch Series 9 and Ultra 2 Sales Ban Paused by US Appeals Court

Wednesday December 27, 2023 8:49 am PST by
The ban on imports of Apple Watch Series 9 and Apple Watch Ultra 2 models has today been temporarily paused, meaning that the devices can now go back on sale for a short while longer in the United States. Apple filed an emergency request to the United States Court of Appeals following President Biden's decision to decline a veto on the sales ban, allowing it to take effect earlier this week. ...