iSupply
Latest
iSuppli sizes up the Apple TV
Apple is known for the high profit margins on its consumer electronics, but according iSuppli Apple is only making $62 (or about 20%) on each Apple TV. As you'd guess the most expensive component is a slimmed down version of Intel's Pentium M processor at about $40, and the cheapest is the $0.75 RealTek audio chip. The new 160GB version's margin is much nicer at more than 30%, but only because Apple charges a $100 premium for an option that only costs an extra $36 to make. Hobby indeed. Of course the obvious reason is that Apple plans to make up the cash selling content, and maybe even more importantly: to get into your living room. While this seems like a great plan and all, we can't help but get stuck on the fact there still isn't any HD content from Apple for a device that supposedly requires a HDTV.
Have LCD prices hit rock bottom?
Wired is reporting that according to a research study by iSupply, for the first time ever, the prices for LCD panels that are used to make all the LCD TVs we love, actually increased this past April. The sizes affected were on the TVs under 32-inches, and while we expect larger models to continue to drop in price, $500 for a 27-inch TV seems pretty cheap. Of course it is not as cheap as a CRT, but they have had 40 years to drop in price. So while we agree that we don't expect to see LCD TVs under 30-inches to drop in price by 50% per year anymore, we think that in the long run there is still some room for additional savings.
