Click to viewThat sweet $ 70 price chopSteve announcedfor theApple TVhad tocome from somewhere(a questionsmartly raised by CW ) and we know the only thing Apple guards more than closely than its secret is its bottom line . So , we fit toteardown mastersiSuppli for afresh estimateto see how much of it was paid for by falling constituent costs over the last year . Surprising result : Not that much . Apple really is subsidise Apple TV , a important shift in strategy .
https://gizmodo.com/apple-tv-profit-margins-not-as-obscene-as-most-apple-wa-266489
This chart make the terms pretty clear : Apple barely ekes out a 10 percent profit ( a single Jackson ) on the 40 GB model at the new pricepoint , a far cry from its more typical50 percent margin .
https://gizmodo.com/ipod-touch-dissected-analyzed-335134
Andrew Rassweiler , iSuppli ’s Teardown Services Manager & Principal Analyst , says that while the mainframe is confessedly the “ big unknown for us ” because it ’s not an off - the - shelf element , he “ doubts it would be anymore expensive than what we ’ve take up . ” The bottom line for Apple ’s bottom descent here is that “ if they were giving it away before , they ’re definitely giving it away now . ”
This is a pronounced change for Apple : iTunes subject matter has survive to betray the ironware , not the other way around . iTunes income is unbelievably minor compare to computer hardware sales , not least of which because the majority of each track , album , whatever goes back to the label or studio . Apple TV suffer to be the first equipment Apple gain more money off of the content than the computer hardware .
Conclusion ? Apple is getting aggressive about move into the animation room , look at the long trial of establishing that fourth - leg . Besides , it ’s better to trade a million at a $ 20 profit than ten thousand at $ 60 . [ iSuppli ]
AppleApple TVApple TV+Gadgetshome entertainmentiSuppliITunes
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