The Apple TV isn’t much more than a Samsung-made A4 processor, 8GB of flash memory, and a connectivity chip. iSuppli says those components along with the casing and power supply only costs $ 63.95. Not too shabby considering the original $ 300 Apple TV contained $ 237 worth of parts and was sold at a 20% manufacturing margin. The new one retails for $ 100, which works out to 35% above the cost of the parts. Of course that’s not pure profit for Apple seeing how the price of the device also covers R&D along with marketing, but at least the parts are cheap and Apple’s margin improved over the previous generation.
Wednesday, October 20, 2010
iSuppli Pegs The Apple TV’s Parts List At $64
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