iSupply sizes up the Apple TV

• Author: admin
• Filed under: HDTV
• Date: Jun 6,2007

Apple is known for the high profit margins on its consumer electronics, but according iSupply Apple is only making $62 (or about 20%) on each Apple TV. As you’d guess the most expensive component is a slimmed down version of Intel’s Pentium M processor at about $40, and the cheapest is the $0.75 RealTek audio chip. The new 160GB version’s margin is much nicer at more than 30%, but only because Apple charges a $100 premium for an option that only costs an extra $36 to make. These low margins really make us wonder why Apple even bothers with this hobby. Of course the obvious reason is that Apple plans to make up the cash selling content, and maybe even more importantly: to get into your living room. While this seems like a great plan and all, we can’t help but get stuck on the fact there still isn’t any HD content from Apple for a device that supposedly requires a HDTV.