The Real Reason Apple's iTV Can Wait

The Real Reason Apple's iTV Can Wait

Recent reports suggest that Apple's wildly anticipated TV set, casually known as the "iTV" despite existing trademarks, may have to wait. Development has been stalled by difficulties inking content deals, while Apple has reportedly chosen to prioritize development of its "iWatch." Tim Cook is a fitness enthusiast, and smartwatches have plenty of potential applications in fitness.

Still, the real reason an iTV can wait is that the TV market isn't going anywhere. It's a huge market, to be clear, but it's also a slow-moving one characterized by low margins, long upgrade cycles, and a distribution model that doesn't want to change. Wearables, on the other hand, make up a young and small market full of potential. Young markets demand prompt, competitive responses, and rivals are already starting to set the stage. Apple needs to jump in and lead the way, since waiting another year would put it too far behind the curve. Another year in the TV market is negligible.

In this segment of Tech Teardown, Erin Kennedy discusses the details of Apple's latest iWatch rumors with Evan Niu, CFA, our tech and telecom bureau chief.

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Erin Kennedy and Evan Niu, CFA, both own shares of Apple. The Motley Fool recommends and owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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