According to market research firm iSuppli, the second-generation Apple TV may have a materials cost of less than $64. Citing iSuppli’s teardown of the device, Bloomberg BusinessWeek reports that the Apple TV’s Samsung-made A4 processor is its most expensive part at $16.55, followed by the Toshiba 8GB flash memory chip, which is estimated to cost $14. The Broadcom-sourced Wi-Fi and Bluetooth chip costs $7.65, according to iSuppli’s estimate, and a Texas Instruments $0.93 microcontroller chip also contributes to the overall cost. Overall, iSuppli found that the use of components similar to those found in the company’s other iOS devices helped to bring the materials cost down to a lower percentage of the retail price than was seen in the first-generation model. “As soon as we saw the first A4 chip in the iPad, it was pretty clear to us that Apple’s plan was to use it across several devices,” said Andrew Rassweiler, the iSuppli analyst who performed the teardown. “It makes sense to control costs across the supply chain.”
Charles Starrett was a senior editor at iLounge. He's been covering the iPod, iPhone, and iPad since their inception. He has written numerous articles and reviews, and his work has been featured in multiple publications.