ROKU CEO: Apple Is Losing Money On The Apple TV
"Apple TV is essentially an accessory for the iPad. They lose money, which is unusual for Apple," he said at a mini-event thrown by technology site Re/Code. "If you're losing money, why would you want to sell more?"
CNet's Joan Solsman covered the event and reported the Wood's quotes. It's unclear how Wood knows if Apple is losing money. Solsman says Wood characterized his Apple TV comments as speculation. Wood makes and sells a similar product, so he probably has a good idea of the profitability of Apple TV.
Recently, Tim Cook called Apple TV a billion-dollar business. He was including sales of movies and TV shows in that figure.
The Apple TV sells for $99, which for Apple is a very low, and competitive price. Independent analyst Horace Dediu estimates that Apple breaks even on the Apple TV, which would be unusual for Apple. It typically prices it products higher than rivals to protect its profit margins.
Apple is reportedly planning to release a new version of the Apple TV this year. The next Apple TV is said to focus on gaming. It may also work as a cable box for Comcast subscriber allowing users to watch streaming live television.
If the hardware is truly unprofitable, then Apple will have to make its money on app and content sales. Apple's app and content business is actually one of its underappreciated businesses. The iTunes busines was up up 19% to $4.4 billion in Q1 2014 making it one of the fastest growing businesses at Apple.
Last year, Cook said Apple's magic is that it does hardware, software, and services. A new Apple TV could be proof of that combination.
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance