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Apple Already Building Apple TV Sets Says Analyst

Production of the quasi-mythical Apple TV sets may well have started according to the company's unofficial oracle, Piper Jaffray's Gene Munster.

In a note to his clients (and reported by Philip Elmer-DeWitt of CNN), Munster says that Steve Jobs already said that he had cracked the riddle of the "simplest user interface" as mentioned in his authorised biography.

That could mean being able to combine a fully fledged Apple TV with a traditional TV set and blending live television with content already stored on the iCloud.

Munster also believes that Apple has been investing in assembling the building blocks and putting together the logistics required for flooding the market with tens of millions of Apple-branded TVs sets, possibly ranging from a small one up to 50-inch models.

He also mentions that prototypes of the television device have been rumoured to be on the market since last month.

Apple's Television sets could account for 1.4 percent of the estimated 220 million LCD or Plasma television sets to be purchased next year, a tiny proportion which could generate more than two billion dollars worth of revenue.

Interestingly, Munster puts the average selling price of the television set at a whopping $1800, which is rather expensive.