The $99 Apple TV is Made of $64 Worth of Parts

iFixit usually has our back when it comes to pictures of gadgets in their birthday suits and instructions on how to tear things apart. However, iSupply uses its teardown for something else: estimating the total cost of manufacturing the device. On the chopping block is the new Apple TV, which the company has wasted no time in disassembling and pricing.

The market research team estimates the total cost of an Apple TV box to be $61.98, or $63.95 when additional manufacturing costs are added in. The most expensive part of the device is the A4 processor, which rings in at $16.55. In second is the 8GB of flash storage, which costs exactly $14, and in third place is the WiFi and Bluetooth module at $7.65.

Though the cost of manufacturing the original Apple TV is unknown, the cost of the second generation Apple TV is said to leave more room for profit. Andrew Rassweiler, an iSuppli analyst, told Business Week the cost of materials for the original device were closer to the retail price.

Read more on about the teardown on iSupply.

Source: iSupply via Business Week

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  • footsoldier
    I don't think they plan to profit from the hardware, only from streaming movies or music or rentals.
    16
  • sliem
    I was expecting it to be $20.
    12
  • lauxenburg
    It makes sense though. Because you can only buy directly off the Apple TV through Apple, the user will in turn keep paying Apple every time they purchase a movie or show, and thus they can charge a low(ish) price for the actual device because you are forced to pay them in the end.
    11
  • Other Comments
  • sliem
    I was expecting it to be $20.
    12
  • Darkerson
    Same here. Thats about what I guessed the other day in the article they did on the teardown. Guess they wont be making quite as much off them as I thought, but they wont be hurting either.
    8
  • thillntn
    Doesn't matter what the thing cost apple to make..many are willing to pay too much for it as always.
    0