iSuppli’s dissection of the device revealed the $237 manufacturing price which would create a per-sale profit of $64 before marketing costs. Unusual? Absolutely, considering that products like the Nano exceeded 50% in profits. Based on these numbers, analysts seem to think the Apple TV will make little to no impact on revenue.
Apple’s surprising financial plan for the Apple TV leaves room for speculation as to where the lost profit will come from. Movie purchases? Meh? Maybe?
What Apple TV Costs to Make [BusinessWeek]