Jun 07 2007
Overpriced? Nope.
The one knock on the AppleTV is that it’s overpriced. Actually, it’s not. Not by a longshot…
Having taken it apart, iSuppli estimates that the components and materials used to make Apple TV cost $237. Since Apple sells it for $299, that would leave a gross profit of $62, or about 20%, before marketing costs.
That would be a big change from Apple’s penchant for gross margins in excess of 50% outside its computer lineup. That’s been the usual case with the iPod music player family and appears to be the case with the iPhone, the release of which is now less than four weeks away.
I assume the next question from the Apple bashers will be, “Why do they have to make 20%? Why can’t they make 5?”
via Businessweek