Rumors regarding Apple entering the television market have been around for some time. Today, Fortune highlights a new analyst report published by Pacific Crest’s Andy Hargreaves. This report was written after a meeting on Wednesday with Apple’s CFO Peter Oppenheimer and Eddy Cue, Apple’s senior vice president of Internet Software and Services.
Hargreaves’s analysis of the meeting was that Apple’s television would be “extremely unlikely” in the near term. His report would backup the recent claim that Apple was in talks with cable providers to potentially build a set-top box that would handle live TV programming. It has also been said that Apple has yet to strike a deal with any cable operators possibly due to reluctance on the part of content providers.
Relative to the television market, Eddy Cue, Apple SVP of Internet Software and Services, reiterated the company’s mantra that it will enter markets where it feels it can create great customer experiences and address key problems. The key problems in the television market are the poor quality of the user interface and the forced bundling of pay TV content, in our view. While Apple could almost certainly create a better user interface, Mr. Cue’s commentary suggested that this would be an incomplete solution from Apple’s perspective unless it could deliver content in a way that is different from the current multichannel pay TV model.
Fortune’s Philip Elmer-DeWitt notes that SEC rules prohibits sharing insider information that might have material affect on the company’s stock, which means that Hargreaves’ report is just that. His report talks about Apple delivering a “great customer experience and addressing key problems.”