Rumors of an Apple television set continue as Jeffries & Co. analyst Peter Misek has been connecting the dots through Apple’s supply chain in Asia. A new research report is out from Misek claiming that the Apple “iTV” is now in “full production.”

According to Misek, Apple is looking to partner with providers such as Verizon and AT&T on the TV set. He also says that Cupertino is looking to transform the traditional cable box:

We believe the iTV is in full production. Recent data out of Sharp, Hon Hai, and other specialty chemical and TV component suppliers support this. Also, JDSU noted that they have a new non-gaming customer for its gesture control modules. They indicated this is a new “living room” based customer. We believe Apple will leverage AT&T’s and Verizon’s content deals for the iTV. Additionally, the WSJ’s sources indicate Apple may also consider a set-top box version for the cable operators.

Misek also notes that the average selling price will be set at around $1,250 and that Apple may have push back the TV’s launch into 2013:

We expect either the iPad Mini to launch in CQ4 with the iTV either launching in CQ4 or CQ1 …

We are including 2 million iTVs in our model (assuming early 2013 release) at an average selling price of $1,250

There is also the possibility that Apple chooses to launch both products before year end. The iTV would then be in time for the Christmas selling season, but that would mean Apple having three huge product launches in a short timeframe and leave little for CY13 outside of the typical iPhone and iPad refresh.

Make up your mind. Is the launch in 2012 or 2013? Either way, I would definitely hand over $1,250 in a heartbeat for an Apple HDTV.

Something about this price isn’t totally believable. Currently Apple’s 27-inch Thunderbolt display is priced at $999, and I find it hard to believe that we would get more screen resolution and features for only $250 more. If this price is correct, Apple really needs to rethink their display pricing.

Furthermore, is $1,250 an economical asking price for a TV set? I think so, but Apple hasn’t ever worried about economically pricing their products.

Don’t touch that dial, Apple TV will be right back.

What would you pay to have Apple in your living room?

Source: MacRumors