For Best Reception, Do Not Stand Near the Left Side of the Apple Television

Apple TV is destined to become an all-in-one connected Apple Television. So says Piper Jaffray analyst Gene Munster, who claims we’ll see the device make that transformation within the next two to four years.

“As Apple TV sales fail to gain steam, we believe an all-in-one Apple Television solution would provide an ease-of-use that many consumers are looking for,” Munster writes. “Apple could also bring its software expertise to the television market and provide for themselves an immediate advantage against its competition (primarily hardware makers). As connected TVs gain traction, we believe software will be a critical selling point, and Apple could offer best-in-class software on an Apple Television.

“We believe that Apple expects to differentiate itself by combining software and hardware designed and developed in-house,” he continues. “With over 125 million addressable iTunes accounts as of Jan. 10 overlapping a $30 billion+ market for home entertainment systems, an Apple-branded television could move the needle. Apple’s ability to deliver hardware, software and content that could replace an entire entertainment system with a single TV, puts Apple in a unique position for the emerging connected TV cycle. Apple already has several of the key ingredients for success in the connected TV market, many of which would differentiate Apple from current market players.”

More blue-sky speculation on Apple’s designs on the living room? Perhaps. That said, it does arrive amid reports (and re-reports) that the company is working on a major Apple TV overhaul.