Apple TV Cost $64 to Make

According to iSuppli, the hardware inside the newest Apple TV cost Apple just shy of $64. They also note that the original Apple TV – which cost $237 to make – was built more like a nettop PC, whereas the current Apple TV is built with almost the same hardware as the iPhone. It seem that Apple is not only unifying their software, but their hardware as well.

Compared to the first-generation Apple TV, the new model offers a dramatically improved ratio of hardware cost to retail price. The initial version of the Apple TV appeared to be a near give-away or subsidized product for Apple, sold at prices that weren’t much more than the underlying hardware costs. With the second generation version of the hardware, the Apple TV’s price is about 35 percent above its BOM and manufacturing cost.

This cost does not factor in R&D, software, or other non-hardware expenses, so Apple’s actual net profit is probably a bit less than $35 per unit.

Check out the chart for a complete breakdown of the bill of materials, and hit the source for additional notes on the teardown.


Post a response / What do you think?