updated 01:25 pm EDT, Tue October 5, 2010
Could prove more profitable
The overhauled Apple TV costs less than $64 to make, even though it sells for $99, says iSuppli. The research firm notes that the most expensive part in the set-top is actually Apple's custom A4 processor, valued at $16.55. By radically reducing the cost of components in the new model, it should theoretically be more profitable than the older one. iSuppli comments that the use of the A4 may provide special savings, since the chip is already installed in the iPad, iPhone 4 and fourth-generation iPod touch.
The second-most expensive part is said to be 8GB of flash storage, supplied by Toshiba. A combination Wi-Fi and Bluetooth module, produced by Broadcom, is valued at $7.65. By contrast, a Texas Instruments microcontroller costs just 93 cents. The Apple TV's $64 total price does not, however, account for other expenses, such as research or marketing.