Apple seeing slim profit on Apple TV
The Apple TV costs the company $237 to produce, BusinessWeek reports. Research firm iSuppli took the set-top box apart, and estimated the cost of components such as the Intel Pentium M variant ($40), accompanying Intel chipset ($28), 40GB hard drive ($37), and GeForce Go graphics chip ($15). The total of all the components ($237) leaves Apple a gross profit of $62, or around 20%, before marketing costs — a rarity for the company, which is known for its large gross margins.
“This is certainly a departure for Apple, or at least it’s approaching a departure,” says Andrew Rassweiler, analyst with iSuppli. “We made some very aggressive assumptions with this device, and by that I mean we assumed low prices on the components.” According to iSuppli, the 160GB model now being offered for $399, a $100 premium over the 40GB version, boosts the profit margin to more than 30%, due to the comparatively small $36 difference between Apple’s cost on the drives.
- YouTube app won’t work on older Apple TVs, versions of iOS starting in May
- Disney pressuring Apple to include more of its channels in upcoming TV service
- HBO Now channel added to Apple TV (Updated)
- New Apple TV model won’t support 4K streaming
- Apple adds CNNgo channel to Apple TV
- Apple releases iOS 8.3 beta 4
- Apple Watch unboxing gallery posted
- iLounge Weekly coming Monday, sign up now
- FoneFox posts Apple Watch waterproof testing video
- iFixit posts Apple Watch teardown
- Apple posts Apple Watch User Guide
- Apple planning to release new iPod touch later this year?
- Nokia shopping around its Maps division, courting Apple
- Apple Watch pre-orders arriving tomorrow, Apple posts more Guided Tours
- Security flaw opens iOS devices to attack using fake WiFi hotspots
- Security flaw leaves about 1,500 iOS apps vulnerable to attack
- Zagg Pocket Keyboard
- Adonit Jot Script 2
- Rokform Rokfolio Wallet Case for iPhone 6 and iPhone 6 Plus
- Parrot Bebop Drone
- Soen Audio Transit XS Wireless Speaker
- Divoom Voombox-party Portable Bluetooth Speaker
- Scosche MagicMount XL Dash/Window
- Theo Power Jump + Power Jump Wireless for iPhone 6
- VERT Wearable Fitness Monitor
- OORT SmartFinder, SmartLED + SmartSocket
- Why can’t I see the iPad-style landscape view on my iPhone 6 Plus?
- Is there a point to having both iCloud Photo Library and iCloud Photo Stream enabled?
- Why can’t I set a longer passcode timeout on my iPhone 6 Plus?
- Can I turn off Message Read Receipts for only some users?
- How do I share one iCloud Photo Library within a family?
- Can I turn off the app icons that appear in the bottom corner on the lock screen?
- Why do I have two separate conversations with the same person in Messages?
- Can I transfer the existing version of an app to my new iPhone?
- How do I quickly erase all of the contacts on my old iPhone?
- How do I disassociate my phone number from iMessage?