"We’ve not seen what they’ve done but what we can say is that they don’t have 10,000 people in R&D in the vision category. They don’t have the best scaling engine in the world and they don’t have world renowned picture quality that has been awarded more than anyone else. TVs are ultimately about picture quality. Ultimately. How smart they are… great, but let’s face it that’s a secondary consideration. The ultimate is about picture quality and there is no way that anyone, new or old, can come along this year or next year and beat us on picture quality."
That stupid quote sums up why Apple could come out with something mediocre and sell massively. It's not about all that crap, or how many people you have. Apple are coming for the TV because they can beat the current model, not to get a slightly better HD picture.