An immediate challenge for Mr. Cook will be to advance Apple's plans in what is expected to be a key market for growth: digital video. Apple is working on new technology to deliver video to televisions, and has been discussing whether to try to launch a subscription TV service, according to people familiar with the matter. Unlike the iPod and music, where Apple has a commanding position, the battle to rule online video remains wide open and the company faces fierce competition.
Apple has long been rumored to be launching a TV subscription service or even an Apple branded television. Some rumors even have an Apple television pegged for release this fall.