Munster points out that an Apple TV set is more than just a piece of hardware with fancy features--it requires a complex content component. Munster has outlined three content scenarios for Apple: a TiVo model (Apple makes the hardware and everything else comes from a delivery source), a set-top box (Apple accepts content from providers such as Hulu and Netflix), and paid-content provider model (Apple collects monthly fees for customized content).
On top of those kinds of considerations there are other little quirks, such as Apple's deal with Rovi. Rovi provides channel guide information to Apple, as well as others. Right now, Apple pays Rovi a flat licensing fee for its product but, Munster's colleague Michael Olson points out, an Apple TV could result in that scheme being altered in a way that's more costly to Apple.
All those factors make the Apple TV a complicated proposition, but they could also make it a breakthrough product.
"We believe that Apple only enters mature markets with the goal of revolutionizing them, as it did with the smartphone," Munster noted.