Apple will produce a TV itself and remove this product from the market
The current Apple TV exists as a low cost way of encouraging people to buy movies from iTunes. There's no way they'd get rid of that.
The current Apple TV exists as a low cost way of encouraging people to buy movies from iTunes. There's no way they'd get rid of that.
They might want to keep the box around for the same reason there is a Mac mini (or they are still selling the iPhone 3GS and the iPad 2): To offer a low-priced entry point. They might also kill it because it clutters their product line. Or because it would be too cheap compared to a full-blown TV and everyone might just go with it instead of the TV.
Apple has a history of simple product lines. Supposing apple did release a tv, how would it make any sense to have a product called "AppleTV" that isn't a tv? Maybe you're right, but I stand by my own estimation.
And I'll explain why. Just like Apple had to support Windows with their product lines, an Apple TV has to support other TVs. People like to forget that the first iPod didn't support Windows. Also consider that AppleTVs do their part in helping to sell devices. Right now, it's $99 to buy a device to extend the usefulness of my other devices. If we turn that around and I had to spend $2000 for a full blown TV just to put pictures up there? Yeah, not going to happen.
Can they release a TV? Of course! Will they rid themselves of the Apple TV as it stands? No.
On a side note: > Apple has said before that they break even from iTunes. iTunes exists as a low cost way for them to sell more devices.
Yes. And remove iTunes from the picture and the whole ecosystem there, and see how many iPhones or iPods they sell. People buy these devices because of iTunes.