It is fair to say that the $99 price tag for the new Apple TV cost is pretty popular with potential customers, a recent InformationWeek article looks into the cost per unit that Apple pay, and I must say Apple could have easily asked for more.
Previously we posted this hardware teardown, however didn’t really look into the cost of the internal hardware, InformationWeek claim that the hardware within the new Apple TV and manufacturing costs total up to $63.95.
In my opinion the Apple could have charged more than $99 for the device, let’s not forget that Apple offer free shipping, which really begins to cut down their profit margins. Also the $63.95 cost price does not include royalties of development costs.
Obviously Apple will have a thoroughly worked out business strategy in place to ensure that rentals etc will bring in even more profit, however I still think it is generous of Apple to price this so cheaply.
Are you surprised that the new Apple TV was so cheap?
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