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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 th
by 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 agoUm 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.