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I think that's bafflegab and hand waving. I claim no particular expertise from working there, but I haven't seen Apple move into any hardware market that they c

by jfb 14y ago

I think that's bafflegab and hand waving. I claim no particular expertise from working there, but I haven't seen Apple move into any hardware market that they can't make ridiculous profits from.

beagle3 14y ago
They probably don't make ridiculous profits on the AppleTV: At MSRP $100 and available $80 every other weekend at respectable retailers if you look for it (I used to see it at $80 e.g. through dealnews.com when I was looking), I assume that the retailers pay $60-$70 for it. BOM and build is probably of the order of $50/unit (think Raspberry Pi + Flash storage + Box + Wifi + Power Adapter + Remove; then subtract Apple economoy of scale). They're probably making $10-$15 on each unit, about $1-$3 would actually go to pay for the software and support. That's good solid profits. But it's not ridiculous profits.