A cheaper Apple TV could finally be on the way
A reliable supply chain analyst has weighed in with a prediction that could ease concerns about the Apple TV’s price.
Given what a powerful little computer it is and what a sophisticated remote it comes with, from at least that perspective the price of an Apple TV isn’t that bad. But compared with almost any other TV-attached streaming media device, it’s incredibly expensive. You can buy a 4K-capable Roku device on Amazon for less than $40. A 4K-capable Apple TV is going to set you back $150-$200 depending on the configuration and retailer. Apple even sells the ancient Apple TV HD for $150. Many have been calling on Apple to release a much less expensive variant of the Apple TV for years now. They may be about to get their wish.
Analyst Ming-Chi Kuo, writing on Twitter:
Apple will launch a new version of Apple TV that improves cost structure in 2H22. I think that Apple's aggressive strategy of integrating hardware, content, and service amid the recession will help close the gap with its competitors.
Now to be fair, the phrase, “that improves cost structure” is a little vague, so it’s not entirely clear that he means, “that costs less than current models,” but that’s the interpretation that everyone covering Apple is running with, and I guess I am too. But it’s worth pointing out that it’s not necessarily what was meant by that phrase. Still, it’s a reasonable interpretation given the phrase, “will help close the gap with its competitors.” From a specs standpoint the Apple TV 4K already blows away its competitors in many key areas. But competitors have been successfully undercutting the Apple TV on price for a long time now.
Years ago Steve Jobs referred to the Apple TV as a “hobby,” and that’s always been a fair way to describe it. You can tell how low-priority it is within Apple by how infrequently it’s updated, and by how little changes from year-to-year with its tvOS operating system.
Ever since the Apple TV got its own App Store, a reasonable question has been, “What is the purpose for this device?” Is it a gaming console? It certainly can be, but Apple hasn’t sunk many hardware or software resources into steering it in that direction. And as much as I’d love to see Apple pivot the Apple TV into being a serious gaming device, I personally almost never play games on my Apple TV. I think in reality most of us are using it to stream TV shows, movies, music, and YouTube. And those tasks can be accomplished quite handily by a less powerful, less expensive device.
We’ll have to take a wait-and-see approach to this claim about a less expensive Apple TV, but it wouldn’t surprise me in the slightest. My big question will be, does this replace the bigger Apple TV, or will Apple release a more powerful update to the existing Apple TV as well? We may know by this Fall.