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Study: Apple TV hardware turning low margins

01/29, 9:20am

Low margin on Apple TV

Apple is currently making little to no money on each Apple TV sold, a teardown analysis suggests. The research firm iSuppli has conducted a estimate of the manufacturing costs of the new 40 and 160GB set-tops, and found that after Apple's $70 price cut, the 40GB Apple TV has a margin of just 10 percent, while the 160GB version has a more reasonable 29 percent. Apple normally has product margins closer to 50 percent, and even this does not account for secondary costs such as marketing or distribution.

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Vudu to offer Bourne download along with DVD release

12/10, 11:50pm

Vudu gets Bourne Ultimatum

Hollywood studios are taking a chance on the Vudu set-top box by granting the service the right to distribute the first of many major movies simultaneously with the official DVD release. The Bourne Ultimatum will be available Tuesday for rent or purchase, in standard and high definition. Universal Pictures is one of a few studios that have agreed to sell high definition content through the Vudu box, though there are not many titles currently available, in contrast to the 5000 standard definition titles that Vudu offers. Vudu sells the set-top box for $400, with rentals ranging from $1 to $5.

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