Analysis: AppleTV Hits Lower Margins Than iPod, iPhone
BusinessWeek and iSuppli partnered to analyze the costs of the AppleTV. Somewhat surprisingly, the $300 gadget was found to cost nearly $237, which yields a significantly lower margin than the iPod or iPhone.
Even more interestingly, the analysis shows that Apple makes significantly more money on each $400 AppleTV they sell, as the cost to upgrade the drive is much higher than the difference in raw cost to Apple. It is uncharacteristic for Apple to make this little of anything they sell. Anyone think this might be the source of Steve’s calling the device “a hobby”?
Thanks, Bill!
Technorati Tags: appleTV, margins, profit
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