Feeds

Apple TV made for the mass market, bits breakdown reveals

Beginner's guide to SSL certificates

Apple's Apple TV costs $299 in the US - and not much less to make, according to a price list of the parts that has been produced by market watcher iSuppli. The cost of materials and manufacturing: $237.

That yields Apple no more than $62 in profit - rather less on Apple TVs sold through third-party retailers. That's a gross margin of 20.7 per cent - rather less than the 40-50 per cent that iSuppli estimates Apple makes on its iPod product line.

The Apple-styled "DVD player for the 21st Century" box's most pricey component is its 1GHz Intel Pentium M processor, which iSuppli estimates costs the Mac maker $40 a pop. Next up is the unit's 40GB hard drive, manufactured by Fujitsu, which costs $37.

But it's early days for the Apple TV, and Apple is clearly getting in at the start of demand for downloaded-content set-top boxes. As demand grows, production volumes rise and Apple can cut better volume-purchase deals. The Apple TV's hardware requirements are unlikely to change radically going forward - beyond storage capacity, of course - allowing the company to take advantage of the falling price of behind-the-curve chip products.

apple appletv
Apple TV: small box, big opportunity?

Right now, the Apple TV is effectively a Mac minus a few computing-centric components, but there's room for Apple to cut costs in future generations by building a more dedicated device to replace the generic PC-based first generation, much as Microsoft did with the Xbox.

MS, of course, needed a more powerful second-generation games console, something Apple probably doesn't with Apple TV until a TV standard emerges beyond 1080p HD.

In any case, Apple TV isn't a Mac but a consumer electronics device, and that means a different pricing plan no matter what. iPhone may be priced high in the hope of selling to price-no-object early adopters, but the Apple TV is geared toward are more mass-market audience, and that means keeping the price down.

Beginner's guide to SSL certificates

More from The Register

next story
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
Heyyy! NICE e-bracelet you've got there ... SHAME if someone were to SUBPOENA it
Court pops open cans of worms and whup-ass in Fitbit case
SLURP! Flick your TONGUE around our LOLLIPOP – Google
Android 5 is coming – IF you're lucky enough to have the right gadget
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
The IT Crowd's internet in a box gets $240k of crowdcash for a cause
'Outernet' project proposes satellite-fuelled 'Lantern' WiFi library for remote areas
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.