Apple and Samsung announced a partnership that will bring iTunes Movies and TV Shows, as well as Apple AirPlay 2 support to Samsung Smart TVs beginning this spring. iTunes users will be able to access their existing library and buy or rent from the iTunes Store. AirPlay 2 also allows users to play videos, music, and photos on their television. This news is noteworthy given it’s the first iTunes integration with a third party display manufacturer. Two takeaways:

This is further evidence that Apple is willing to change its hardware-first approach and work with third parties to boost Services revenue. Instead of creating software to make its hardware more appealing, as has been the status quo, Apple is now permitting its software services on competing hardware. Other recent examples of this include Apple Music on the Google Play store, announced in Nov. 2015, and the Amazon Echo’s support of Apple Music announced in Dec. 2018.

Apple continues to shy away from launching an Apple-branded television. While investors are not expecting Apple to launch its own television, the Samsung arrangement further suggests that there is little chance the company launches its own TV in the next several years.

Disclaimer: We actively write about the themes in which we invest or may invest: virtual reality, augmented reality, artificial intelligence, and robotics. From time to time, we may write about companies that are in our portfolio. As managers of the portfolio, we may earn carried interest, management fees or other compensation from such portfolio. Content on this site including opinions on specific themes in technology, market estimates, and estimates and commentary regarding publicly traded or private companies is not intended for use in making any investment decisions and provided solely for informational purposes. We hold no obligation to update any of our projections and the content on this site should not be relied upon. We express no warranties about any estimates or opinions we make.