But the bigger question remains—why would Apple sell a device on such a thin margin? I think the answer is two-fold. First, a $49 Apple TV would be an incredible, no-brainer accessory to devices running iOS 5. And though margins would be thin on the device itself I think it would help drive sales of iOS devices and propagate iOS platform lock-in. Second, I think the low price would give Apple momentum in the living room.
Nobody really knows what Apple has planned for Apple TV. A television set? Cheaper Apple TV? The same Apple TV we have now?
One thing is clear — Apple thinks the TV is a hobby, but it keeps dabbling in it. That must mean that it sees a future in there somewhere.
The Case for a $49 Apple TV | David Barnard
How would a cheaper Apple TV increase sales for iOS devices?
The low end Roku is $59, it’s definitely possible.
Making the iTunes/iOS ecosystem available in as many places as possible makes a ton of sense for both Apple and its developers. A ubiquitous Apple TV would be a big step to making Apple the de facto standard for whole-home entertainment. Link it to iPod/Pad/Phone with music, movies and even multiplayer games and you’ve got a solution that gives Android and even Xbox and PS3 a run for their money. So much of this is available today. Apple just needs to focus to win this market too.
How is $49 a no brainer yet the current $99 is not? The tv it’s connected to cost a thousand. I think that less than $100 is compelling and it’s already there.
Maybe under $50 you can get away without the spousal approval….? 😉
when there is more content perhaps the price will go down as a loss leader to get folks into said content. But until they were are apps for all sports, places like HBO not holding back their itunes stuff until home video release etc. the content isn’t there.
Agreed. Apple needs to open it to developers to write apps. Maybe not full scale like the iPhone or iPad, but at it at least needs apps like Pandora, HBO Go, Hulu, etc.
Pandora is the key for me. I’m tired of connecting my laptop to my receiver just to listen to music.
This is key. A price drop below the level of the cheapest Roku box is good, especially since it has HDMI and WiFI N which the cheaper Roku does not have. However, the Roku does have a ton of apps, or “channels” as it calls them. I personally think the move to iOS for the AppleTV means that it will be opened soon to app development, but I’m not basing that on anything more than wild-assed speculation and unicorn farts.
A $100 purchase requires a little thought. A $50 purchase is in the impulse range. At $100, people probably buy one for their main media center. At $50, people will buy one for every television. Heck at $50, it costs less than an HDTV convertor.
So at $100, I will buy an AppleTV. At $50, I’ll buy three of them. Two more devices to rent television and movies on. It also makes me more likely to purchase movies from iTunes in the future. Finally it makes me more likely to purchase Apple hardware to store my growing iTunes library at home.
Pandora supports AirPlay. So it is possible to play music over your system without hooking up a laptop. App Support would be a great benefit though. Something more than Netflix and the sports apps they have now.
True, and while a nice feature, it’s not very convenient. I don’t want to have to use two devices to listen to music unless it’s coming from my iTunes library. Definitely needs more apps.
“but I’m not basing that on anything more than wild-assed speculation and unicorn farts.”
So you’re an analyst then. 😉
You are right. I have one Apple TV that we move back-and-forth between televisions in the house. When the new Apple TV comes out, I will by one more at $100. But if the price was between $50 and $60, I would buy about three of them: one to replace the current Apple TV, one for the bedroom TV, and one to attach to a HDMI monitor on my desk (Yes, I am a big nerd) for airplay from my iPad 2.
…. and maybe an extra to go into the computer bag, because, you know, it could do presentation and stuff with the iPad… 😉
Given Apple’s margins they should give them away free with iPads and Macs.
A $49 AppleTV makes more sense than a $49 Thunderbolt cable.
Exactly. Why let analysts have all the fun to themselves? 🙂 Now, if I could only figure out how to get paid for this like they do…
Not being able to output 1080p makes it a useless media centre.