Steve Jobs called Apple TV a hobby: he wasn’t kidding

Steve Jobs (Apple CEO) called Apple TV a hobby and he wasn’t kidding is the view of one article of business week which carries on explaining a breakdown of the research from iSuppli’s analysis of the cost of making the Apple TV.

The new set-top video box named Apple TV is one of the first products in a new future of low profit Apple products (these include the iPhone and iPod Nano), normally Apple love to make products with a 50% profit margin but things have been changing of late.

The Apple TV connects a TV to videos stored on a Windows computer or Mac and iSuppli estimates that the profit of each Apple TV sold is around $62 as they say it costs $237 to make and they sell for $299.

Now the profit is reduced still when you take into account the fact that for every Apple TV sold the company will split the revenue into chunks reported over eight quarters which leads us to a $7.75 of that total will be profit.

All this is before marketing costs.
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