Apple TV’s profits slim?
Posted by Dennis Sellers 
Jun 6, 2007 at 12:55pm
By typical Apple standards, the new set-top video box may as well be a hobby given how unprofitable it is in its current form, according to a BusinessWeek report. That’s one conclusion you can draw from research firm iSuppli’s analysis of the innards of the device, which connects a TV to videos stored on a Mac or Windows computer.
Having taken it apart, iSuppli estimates that the components and materials used to make Apple TV cost $237. Since Apple sells it for $299, that would leave a gross profit of $62, or about 20 percent, before marketing costs. “That would be a big change from Apple’s penchant for gross margins in excess of 50 percent outside its computer lineup,” says BusinessWeek. “That’s been the usual case with the iPod music player family and appears to be the case with the iPhone.”
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
