What About Apple?

I suspect there may be the occasional sleepless nights when CEOs of wireless digital picture frame hardware and software companies lie awake asking themselves “what if Apple enters our space?”

After a long life as a niche player in the PC market (a niche I’ve been proud to work in for 10+ years), Apple has found a second, much more successful life as a consumer electronics company thanks to the smash success of the iPod. The recent introduction of the company’s Apple TV product – which wirelessly connects video and audio content bought at the iTunes Store to the home television and entertainment center – shows that Apple’s eye has turned towards the home.

First the audio player, then the television. Is the living room wall next?

Many of the elements are in place for Apple to make a play here. All their computers come with an easy to use, powerful photo library and sharing program called iPhoto. IPhoto is web aware and able stream photo feeds online. And given that Apple’s real genius with the iPod was not to make the first product of its kind, but rather to make the best (the best software, user interface, hardware, and integration of all the elements), it’s not hard to imagine the same refinement of an existing product happening with wireless frames.

But there are things to militate against Apple coming here, too. First, the photo sharing in iPhoto is desktop-application-based and requires use of a Mac. There’s no Windows version. Without a wide-open, web-based photo-sharing service, an Apple frame might face larger hurdles to widespread use than something that relies on Flickr or Picasa.

Another thing that could dissuade Apple is margin. Historically, Apple loves big margins and has been able to maintain both high margins and (comparatively) high prices for its hit products. Given that the price point of wireless frames could easily come down below $200, perhaps even under $100 for some sizes, in the next year, will the margin be present to entice Apple to move?

Apple and wireless digital picture frames seem like they could be a natural match. After all, what would be better than marrying a group of user interface geniuses, and great hardware designers, with an emerging technology space?

It will be interesting to see what happens here, and whether those industry CEOs will be able to sleep soundly through the night.