Apple TV Manufacturing Cost Estimated at $64

According to Arik Hessendahl from Business Week, the components of the newly released Apple TV second generation are speculated to cost $64 in parts, a stark contrast to its retail price of $99.

This suggests that the profit margins for the device could be quite slim, especially when compared to the near 60% gross margin of Apple’s iPhone.

However, Apple might still see substantial profits from its movie and TV show rentals, suggesting that Apple TV could be a profitable venture beyond just hardware sales.

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Tj Luoma

Gary is a dedicated writer for TUAW, bringing a wealth of knowledge and enthusiasm for all things Apple. With a keen eye for detail, Gary covers everything from the latest iPhone and iPad releases to in-depth reviews of the MacBook Pro and Apple Watch. His insightful articles help readers navigate the ever-evolving world of Apple technology. Gary’s expertise and clear writing make him a trusted voice in the Apple community.