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If Apple would release a robust mesh system that plays nicely with IoT, Home, etc. that'd be a Day One purchase for me.
 
I think the next Apple home devices, will create a mesh like network for themselves and any other devices, for me it would be ideal, hardwire an ATV in a room and its acts as a WiFi extender.
 
I don't see Apple going this route because most of us don't actively engage with the user interface of our routers on a day-to-day basis. Macs don't do much that Windows PCs don't, nor iOS devices much that Android devices don't...but they do it differently. There's that 'slick' factor; that's what made the iPods so successful, an easy to use, intuitive interface that people used frequently when using the device.

Many people mess with router setup once or twice, and that's about it unless they run into problems. As long as the interface is decent, documentation good and setup pretty straightforward, there's not a lot of 'value add' room for Apple to bring to the table for the bulk of router users.

Apple also likes their reputation for security-mindedness, and routers by their nature are potential targets of hacker attack. You don't want a major data breach to be traced back to a vulnerability in your company's product. Apple would need to commit maintaining this product.

1. Build in an SSD and resurrect the Time Machine.
Interesting concept. Some Thunderbolt docks can incorporate an SSD (Echo 13 Thunderbolt 5 SSD Dock), and given the usefulness of the ports, and the fact many people already have routers, if Apple were to enter the market, would it make more sense to make this hypothetical new Time Machine a dock instead of a router?

Ensuring HomeKit and other Apple technologies like AirPlay, Airdrop (and the underlying protocol support required to) function properly? So many people have poor experiences with HomeKit, HomePods, Siri, because their network is bad.
They might make their products work better that way, but it'd be a dangerous way to go. It would make Apple's products look more proprietary and poorly executed if they didn't work well with dominant market standards and were only reliable with Apple's own device. It would send the message to consumers that if you already have a router and don't want to pay 'the Apple tax' to get theirs, you may experience compatibility issues if you buy their HomePod, etc...

A router is expected to 'play nice' with a wide range of products from multiple companies, not operate within a 'walled garden' single company ecosystem.

Reminds me of the longstanding debate over 5K vs. 4K at 27" for displays; with Macs there's allegedly more of an observable difference than with Windows PCs, which makes people question why Apple can't or won't do what Windows pulls off.

One of the things I think the market is almost completely lacking is routers that look acceptable to be out in the open. (Which is pretty important for 6Ghz) I think Google is the only company doing it.
Hah! My router looks like a big black tarantula sitting on the furniture in the living room ready to pounce on somebody, but while aesthetics are so subjective it can be hard to find common ground, some of the newer stuff looks pretty nice. Some of the TP-Link Deco mesh routers look fairly nice; the Amazon Eeros look okay. But the 'tarantula' is paid for, so...

They're not going to develop a router. They're going to turn their existing products into routers. It makes sense, with HomePods or Apple TVs serving as smart home hubs, that they would want to add functionality and value to those products by allowing them to operate as routers. Especially the Apple TV, which is often placed in homes very close to the same location coax cable modems are located - inside of TV stands.
Any idea how much it would add to the cost of those products to incorporate wifi extender capability?

I ask because with the Apple Studio Display, a common criticism is that while it incorporates a good (by monitor speaker standards, which are low) spatial audio system and Center Stage webcam, it's very expensive and many users don't need or want those and would prefer a cheaper 'just a display' offering.

I recently shopped online for wifi extenders and a well-rated brand name Wifi 6 (never mind 6E) extender was expensive enough I would think building that functionality into other devices would jack up the price.
 
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