Arik Hessendahl over at Business Week reports that the new 2nd generation Apple TV model might cost $64 in parts (compared to its $99 retail price). If that number is anywhere near right, then the margins on ATV are ridiculously low. In comparison, Apple’s iPhone gross margin was estimated near 60%. Apple could be seeing a generous profit from movie and TV rentals above basic sales, making Apple TV a potentially lucrative market.
TUAWIn Brief: Apple TV part cost pegged at $64 originally appeared on The Unofficial Apple Weblog (TUAW) on Tue, 05 Oct 2010 16:00:00 EST. Please see our terms for use of feeds.
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