Wednesday, June 06, 2007

iSuppli sizes up the Apple TV

Apple is known for the high profit margins on its consumer electronics, but according iSuppli 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. Hobby indeed. 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.

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