iSuppli: Apple TV Costs $64 to Produce

Paul Lilly

Market research firm iSuppli took a chisel and a calculator to Apple's second-generation Apple TV and what they found was a fair bit of iPad and iPod touch DNA inside.

"The first Apple TV was built like a nettop computer. The architecture was basically a stripped down, small form-factor desktop PC," said Andrew Rassweiler , director, principal analyst, and teardown services manager for iSuppli. "The second generation Apple TV is more like an iPad or iPod touch with no display. The Apple TV's A4 processor core, Wi-Fi/Bluetooth chip, and power management chip are the same building blocks used in the iPad, iPhone 4, and iPod touch."

According to iSuppli's teardown analysis, the Bill of Materials (BOM) of the second-gen Apple TV comes out to two pennies shy of $62. After factoring in the cost of manufacturing, iSuppli reckons Apple spends a nickel short of $64 on each new Apple TV box it grows.

The most expensive part inside is the Samsung A4 processor, which iSuppli pegs at $16.55. Memory adds another $14, while all the other parts cost less than eight bucks a pop.

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