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Low-fi Apple TV no money-maker says iSuppli

June 6th, 2007 · No Comments

Market analyst iSuppli has dissected the TV media streamer to determine its manufacturing costs and has concluded that Apple is working on the thinnest of margins. iSuppli estimates that the actual components and raw material would cost the -maker 237 dollars, which is a surprisingly tight margin for a product that costs 299 bucks. Apple typically works to a 50 per cent profit margin on its iPod products. One conclusion might be that the company is taking a long-term view and is looking for eventual profit from the iTunes download store. Don’t expect a hi-fidelity sound performance from your Apple TV though. The cheapest component in box is the audio chip. Sourced from Taiwanese vendor RealTek Semiconductor, it’s worth just 75 cents.

Tags: Hi-fi · Internet and networking · Trade

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