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Without subsidizing the price they can't sell GoogleTV boxes for $150 bucks they'd be losing money. Not with any decent sort of processing power. Remember all

Without subsidizing the price they can't sell GoogleTV boxes for $150 bucks they'd be losing money. Not with any decent sort of processing power. Remember all those Android smart phones out there are subsidized by contracts. Apple's box is subsidized by iTunes sales. I'm telling you a lot of those console like games on Android smart phones aren't going to work on a GoogleTV with a $150 price point. EDIT: I'm not saying the BOM on the boxes are over $150 but total costs involved (marketing/manufacturing/support) would run at a loss. Or even that Apple is selling their box at a loss but the platform is subsidized.

mdasen 15y ago
I'm skeptical. Apple doesn't usually sell things for a loss hoping to make it back in future sales. Do you have a source that the Apple TV costs Apple more than $100 to build? iSuppli estimates that the Apple TV cost Apple $64 to build a year ago (http://www.computerworld.com/s/article/9189541/_Margin_challenged_Apple_TV_costs_64_to_build http://www.computerworld.com/s/article/9189541/_Margin_chall...) and I'm guessing it's come down a bit since then. That would indicate that it is definitely possible to build such a media player for even $100 and make a profit. The Apple TV has a 1GHz ARM processor with decent graphics capabilities. John Carmack has said that the iPhone 4 (same processor as the Apple TV) has better graphics capabilities than an XBox or Playstation 2.
- mikeryan 15y ago
  Um from your article (I accept its not absolutely proving my point) but the basic premise still stands that Apple has a secondary ongoing revenue stream past the actual hardware sale. "It's hard to say whether the second-generation Apple TV is subsidized," said Rassweiler, noting that iSuppli's BOM doesn't account for software costs, licensing fees, research and development, marketing and other expenses. Nor do retailers -- including Amazon.com, which sells the Apple TV -- pay the full retail price when buying them from Apple.
Pewpewarrows 15y ago
Really? The smartphone bill of sales comes out to about $200 per device. After you take out the battery, baseband, transceiver, GPS, gyroscope, display, and touch-screen components, that price gets slashed in half to around $100. Granted there are a lot of other costs to associate with it, such as additional output and input controllers, marketing, distribution, and profit margin. But still, it's not out of the realm of possibilities to see the new models go for $150-$200.
- mikeryan 15y ago
  There's not a lot of CE manufacturers selling devices with a $100 BOM for $150-$200. Those $200 Smartphones (iPhone 4S is ~$189) retail for $600 assuming the same markup even with your number of $100 your looking at a $400 box. Boxee's box is $200 bucks and is pretty decent so you have to assume a $200 box is possible, but GoogleTV is a significant step up in performance and hardware features to Boxee.
nextparadigms 15y ago
If Boxee can build a $200 set top box with the same processor that Logitech used in their Revue (and sold it for $300), I think $150 price can be achieved with a high-end ARM chip. Just add 4 GB of internal storage - should be enough for most Android games, and a MicroSD slot for expansion in the future.

mdasen 15y ago

I'm skeptical. Apple doesn't usually sell things for a loss hoping to make it back in future sales. Do you have a source that the Apple TV costs Apple more than $100 to build? iSuppli estimates that the Apple TV cost Apple $64 to build a year ago (http://www.computerworld.com/s/article/9189541/_Margin_challenged_Apple_TV_costs_64_to_build http://www.computerworld.com/s/article/9189541/_Margin_chall...) and I'm guessing it's come down a bit since then. That would indicate that it is definitely possible to build such a media player for even $100 and make a profit. The Apple TV has a 1GHz ARM processor with decent graphics capabilities. John Carmack has said that the iPhone 4 (same processor as the Apple TV) has better graphics capabilities than an XBox or Playstation 2.

mikeryan 15y ago
Um from your article (I accept its not absolutely proving my point) but the basic premise still stands that Apple has a secondary ongoing revenue stream past the actual hardware sale. "It's hard to say whether the second-generation Apple TV is subsidized," said Rassweiler, noting that iSuppli's BOM doesn't account for software costs, licensing fees, research and development, marketing and other expenses. Nor do retailers -- including Amazon.com, which sells the Apple TV -- pay the full retail price when buying them from Apple.

Pewpewarrows 15y ago

Really? The smartphone bill of sales comes out to about $200 per device. After you take out the battery, baseband, transceiver, GPS, gyroscope, display, and touch-screen components, that price gets slashed in half to around $100. Granted there are a lot of other costs to associate with it, such as additional output and input controllers, marketing, distribution, and profit margin. But still, it's not out of the realm of possibilities to see the new models go for $150-$200.

mikeryan 15y ago
There's not a lot of CE manufacturers selling devices with a $100 BOM for $150-$200. Those $200 Smartphones (iPhone 4S is ~$189) retail for $600 assuming the same markup even with your number of $100 your looking at a $400 box. Boxee's box is $200 bucks and is pretty decent so you have to assume a $200 box is possible, but GoogleTV is a significant step up in performance and hardware features to Boxee.

nextparadigms 15y ago

If Boxee can build a $200 set top box with the same processor that Logitech used in their Revue (and sold it for $300), I think $150 price can be achieved with a high-end ARM chip. Just add 4 GB of internal storage - should be enough for most Android games, and a MicroSD slot for expansion in the future.