As a result, Apple is increasingly leaning on its services segment, which includes businesses such as iCloud storage in addition to its music, television and movie content businesses.
Apple is clearly using the days leading up to CES to implement the first moves in its video strategy. Apple CEO Tim Cook said last week in his revised outlook that services generated $10.8 billion in fiscal Q1 and that Apple plans to double the size of its service business from 2016 to 2020. This means there's no longer any need for an Apple TV peripheral.
Still, a deal with Samsung is even more interesting, as the giant smartphone makers have a complicated history. (Recently, Huawei usurped Apple's number-two spot). "There are others both Apple and Samsung should worry about". Instead of creating its own TV, Apple has made a decision to forge partnerships with established, popular TV makers, with Samsung, LG and Vizio all set to support Apple features later this year.
Apple (AAPL) is not known for sharing.
But what we're most excited about is the AirPlay 2 compatibility. They'll also be bringing support for AirPlay 2 starting at around the same time. The app will appear in a carousel along with other services including Netflix, YouTube, and Amazon Prime Video. It functions similarly to the now well-established and still-expensive organic light emitting diode (OLED) technology used in flagship TVs from LG and Sony, but is chemically and mechanically distinct.
Samsung will introduce a washing machine that can send alerts to your TV so you know your laundry is ready while you watch Game Of Thrones - and a fridge with an app that lets you check its contents while you are out shopping. "AirPlay 2 support will be available on Samsung Smart TVs in 190 countries worldwide", the company announced on Sunday at the CES 2019 here.
"By adding support for Apple AirPlay 2 and HomeKit, users can play content from their iPhone, iPad and Mac directly to SmartCast TVs, and enable TV controls through the Home app and Siri", Vizio CTO Bill Baxter said in a press release.
The impact of iTunes landing on Samsung movies will be muted for now.