How Apple Can Disrupt The TV Market, Trouble Netflix

Apple Inc. (NASDAQ: AAPL) could disrupt the TV market and the potential product could put Netflix, Inc. (NASDAQ: NFLX) in troubled waters, Cyrus Mewawalla, head of TMT thematic research at CM Research, told CNBC.

"TV today is still old fashioned and 90 percent of them still come from old fashioned technologies such as cable, satellite and terrestrial TV. Apps like Netflix are doing so well because they have no competitor."

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He continued, "If Apple could introduce a pure Internet TV that is an operating system which sees what the viewer is watching, then that transforms everything and suddenly Netflix will be competing with an entire TV-build ecosystem other than just apps."

Answering on why Apple is different from other companies such as Nokia Corp (ADR) (NYSE: NOK) and BlackBerry Ltd (NASDAQ: BBRY), Mewawalla said the ecosystem of Apple is preventing its customers from "switching to the next biggest product."

Mewawalla also noted that Apple's R&D is "pretty high" as it has invested $5 billion in R&D in the last year alone and said that Apple has got a whole bunch of products in its pipeline, which is 12-24 months away.