Apple's COO, Tim Cook, dismissed the TV market as of no interest to Apple and the Apple TV as a hobby before adding that the company still believes that there is something in there
Cook said that sales of the device grew by 35 percent year on year which is great but not spectacular, which explains partly why they are still investing in the product.
The problem lies in the fact that the Apple TV is very much a closed platform and one that, unlike say the iPod, iPhone or iPad, is not mobile. Unsurprisingly, this lead Cook to describe Apple as a mobile device company.
Obviously, iTunes is still one of the reason why the Apple TV is very much on Apple's product line but iTunes on a non-mobile platfom has to compete with the likes of Hulu, Seesaw, Youtube, BBC iPlayer and so many other competitors.
Apple hasn't been updating the Apple TV for some time already and we've already fantasised a couple of times on an iPad accessory that might kill the Apple TV or an iPhone Wireless HDMI Base unit that could perform the same task.
But the device could be rehauled to become a central component of Apple's strategy to take over the lounge; As Gene Munster, one of the sharpest analysts covering Apple once mentioned, the company could launch an all inclusive package that contains TV shows and movies for a fixed fee.
With the acquisition of Lala.com, the building of a $1 billion data centre in the US and the significant investment in the A4 processor, Apple could well be baking something revolutionary instore.