Apple TV revamp expected as Google rivalry heats up

The competition between Apple (AAPL) and Google (GOOG) in the digital living room is about to intensify.

Tech analysts expect Apple soon to revamp its under-performing Apple TV gadget, which plugs into a TV so you can watch movies and shows via iTunes, in order to take on the new Google TV service when it launches this fall.

Google TV is a new way of watching Web content on televisions, via a Google operating system of sorts. Google is partnering with Sony (SNE), Logitech (LOGI), Dish Network (DISH) and others on the service, which will make its debut on a new set from Sony. No specific date has been announced.

To gear up for the competition, tech analysts expect Apple to cut the price of Apple TV to $99 from $229. But is it too late?

"Google is proposing a solution that will change the way we watch TV," says James McQuivey, an analyst at Forrester Research. "This is something Apple needs to take very seriously."

McQuivey doesn't believe a price cut is enough. He thinks Apple has to offer more than iTunes viewing: Apple TV also needs to work with the more than 10,000 software apps that are available for the iPhone and iPad. "Apps are the new definition of the Apple experience," he says.

Unlike the iPhone and iPad, which can connect to a host of entertainment choices from the likes of Netflix, ABC and Hulu Plus, Apple TV owners' only option are downloads from iTunes.

Consumers looking to add Google TV to their living room will have a choice of a new flat-screen Sony HDTV or Sony Blu-ray player that has Google technology built in. Pricing hasn't been announced. For those who don't want a new TV or Blu-ray player, options include a set-top box from Logitech or a new box being offered for satellite TV from the Dish Network.

Piper Jaffray analyst Gene Munster believes Apple eventually will reinvent Apple TV as an all-in-one, high-def TV set with built-in Web connectivity. He sees it launching in 2012 at $1,800-$2,000. "Apple has a golden opportunity to be relevant in the living room," he says. "They're not today."

Apple in recent years has held an event in September in San Francisco to tout new iPods. Munster believes Apple will do the same this year, focusing on music and the Apple TV relaunch.

Apple had no comment.

Munster thinks both Apple and Google have their work cut out for them.

"People don't want another box in their living room," he says. "Google as a separate box is a tough sell."

Of the 220 million flat-panel TVs projected to be sold in 2012, Munster believes that 65% will be Internet connected and that Apple could have 1.4 million of those with a new Apple TV set. That would add 3% to Apple's revenue in 2012, he says.

San Francisco proposal would limit toys in kids' meals

A serious move is afoot to force fast-food giants to make kids meals more nutritionally viable if they want to sell them with kid-luring toys.

In San Francisco, newly proposed legislation would ban toys from most kids meals sold at McDonald's, Burger King and other chains unless the meals meet more stringent calorie and sodium limits. The legislation also would require fruit or veggies in each meal.

The $179 billion fast-food industry is watching with intense interest — aware that menu-labeling requirements that started locally in New York City several years ago have since been copied regionally and will become federal law in 2014 under the health care act.

Kids meals rank among fast food's big sales catalysts. Although kids meal sales are declining — because budget-minded parents sometimes opt for dollar menu items instead — the industry sold about $5.5 billion worth last year, researcher NPD Group reports.

Nothing gets kids more excited about eating out than a kids meal with a toy. That's what 36% of kids under age 6 say they like best about eating out, NPD reports. That compares with 16% who like the food best.

"Companies know it doesn't work to advertise food to kids — they want the toy," says Michael Jacobson, executive director of the consumer group Center for Science in the Public Interest.

For each kid who buys a kids meal, there's typically at least one parent — and often siblings — who make more profitable purchases, says Ron Paul, president of researcher Technomic.

San Francisco now emerges as the biggest city to place a stake in the ground linking kids meal toys and nutrition. Several months ago, Santa Clara County, just south of San Francisco, became the first local government to enact such a law, but it applies to a tiny number of restaurants. In San Francisco, it could affect hundreds.

"There's no fundamental conflict between a healthy meal and a happy meal," says Rajiv Bhatia, environmental health director for San Francisco.

He says chains could easily conform by making relatively small changes in ingredients or portion size, reducing the number of french fries, or replacing fries with veggies, fruit or salad.

Officials at McDonald's and Burger King declined to comment.

"This is just another example of San Francisco taking a bad idea and making it worse," says Daniel Conway, spokesman for the California Restaurant Association. "This ordinance will put restaurant employees in the position of playing food police."

More Saab products coming, Muller says

Saab's new Dutch owner, Spyker Cars NV, intends to spin additional models off its new Phoenix platform after it yields a redesigned Saab 9-3.

Saab dealers will receive the latest 9-3 in 2012, Spyker founder and Saab Automobile AB Chairman Victor Muller said today at the CAR Management Briefing Seminars here.

The dealers, who have been starved for product as former owner General Motors attempted to sell or liquidate the brand, also will obtain a Cadillac-based 9-4X crossover when it goes into production in April 2011 in Mexico.

Muller led the purchase of Saab earlier this year and quickly ramped up the automaker's plants to begin U.S. deliveries of a new 9-5 in recent weeks. The 9-5 was already in the pipeline as a platform developed by GM.

“Spyker's only contribution to the new 9-5 is the fact that it still exists,” Muller quipped, referring to his moves to save the Saab brand.

“There had been no cars delivered to U.S. dealers since February 2009,” he said.

Muller said the 9-3's Phoenix platform began as a GM platform for the 9-3. But Saab is now overhauling the platform and making design changes to the car.

Lamborghini predicts return to growth after H2 revenues fall 2.6%

Lamborghini, the Italian luxury sports car brand, remained cautious about 2010 when it posted a 2.6 percent fall in first-half revenues despite continued growth in Asia.

Lamborghini, a unit of Volkswagen's Audi brand, was severely hit by the recession last year, when sales fell 41 percent.

"2010 is a transition year for Lamborghini," CEO Stephan Winkelmann said in a statement on Tuesday, adding that market recovery and brand repositioning would help it return to growth.

The maker of supercars said revenues fell to 152.9 million euros ($199.9 million) in the first half when it sold 674 cars, down 18 percent.

Lamborghini cars range in price from 180,000 euros to 400,000 euros.

Car sales more than tripled in China, its second-biggest market after the United States, to 86 in the period. Lamborghini has said it expects to sell more than 100 cars in China in 2010.

First-half sales in Australia, Singapore, Hong Kong and Taiwan more than doubled.

The carmaker said it was heavily investing in the carbon fiber technology, which boosts power efficiency and helps reduce weight and car emissions.

Lamborghini competes head-on with Ferrari, owned by Italian carmaker Fiat.