Google, Apple TV Wars: Jobs Wins Round One

Apple and Google have just ignited the first round of the living room wars. Current signs indicate that Apple has temporarily taken the lead. Although it's too early to draw conclusions and the situation is still evolving, Apple has at least demonstrated its sophistication over Google.

According to an article on Business Insider, Apple and Google have just ignited the first round of the living room wars. The article suggests that current signs show Apple has temporarily taken the lead. While it’s still too early to draw definitive conclusions and the situation continues to evolve, Apple has at least shown its sophistication over Google.

Google's upcoming product is named Google TV, initially available in Logitech's $300 set-top box or Sony's high-end TVs. Google TV aims to become the default way of watching TV by connecting cable boxes with TVs, allowing users to search through TV listings and video websites, and eventually having an App Store.

Recently, Apple launched a new version of Apple TV priced at $100, which is two-thirds cheaper than Google's set-top box. It functions as a DVD player for the 21st century, offering movie and TV rentals from iTunes, Netflix streaming movies, etc. Starting next month, users will be able to wirelessly upload videos and audio via iPad, iPhone, or iPod touch. Although Apple hasn't officially announced this plan yet, it's expected that an App Store will appear about a year later.

Analyst Michael Gartenberg made the following distinctions between the two products:

Google is aiming for the "first input" position on the TV, where the cable box is inserted. This is a very significant and challenging bet. Most people don’t deal with the first input. How often do you change your cable or satellite provider? Even if you do, it would be quite rare.

Apple, on the other hand, is pursuing the "second input," the place where DVD players or video game consoles are usually connected. For most households, this might be a more convenient entry point, easier to plug in and out, and easier to experiment with.

Considering the relatively low price of Apple TV, it's not hard to foresee that the adoption rate of Apple TV will be higher than Google TV during this holiday season.

No one really needs either system. Most people don't even want their TVs to have internet capabilities, let alone what Google offers.

Due to simpler information and a smaller price tag, Apple will find it easier to persuade people to give Apple TV a try. This is how Apple wins the first round of the battle.

Looking ahead, Google still has much potential in adopting Android's strategy in the mobile market and widely spreading its TV software.

If Google can get TV manufacturers, set-top box makers, and cable companies to use Google TV as the basis for their products, people could become Google TV users without even realizing it. Apple, on the other hand, is unlikely to license Apple TV software to other companies or even produce its own TVs. If Google can make its software ubiquitous, it could quickly eat into market share. However, for now, people still have to actively choose Google TV and spend hundreds of dollars to buy it, which will greatly limit the market spread of Google TV.