iSuppli: 2nd Gen AppleTV Costs Just $64 To Make

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appletvteardown

It’s selling for just $99, and you know Apple’s making a profit, but exactly how much does it cost to make every second generation AppleTV? Just $64, according to market research firm iSuppli.

Not so surprisingly, given the surprising lack of hardware in the new AppleTV, the most expensive component of Cupertino’s streaming set-top box is the showcase A4 CPU, which costs $16.55 each. The 8GB flash memory chip is second up, costing $14, and then the Broadcom WiFi and Bluetooth controller at $7.65.

“As soon as we saw the first A4 chip in the iPad, it was pretty clear to us that Apple’s plan was to use it across several devices,” said Andrew Rassweiler, the iSuppli analyst who performed the teardown. “It makes sense to control costs across the supply chain.”