Jakub Karnik Apple is famous for putting huge margins on its products. However, journalist John Gruber has now pointed out that this does not always have to be the case. Especially in the case of Apple TV and HomePod, the prices are set so low that Apple basically does not earn anything on either of the mentioned products, on the contrary, they are loss-making for the company.
Gruber is one of the most knowledgeable journalists on Apple and its products. For example, AirPods played in his ears for several weeks before their official launch. He then shares all his knowledge on his blog DaringFireball. In the latest episode of his podcast The Talk Show then the journalist revealed interesting information about the prices of Apple TV and HomePod.
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David Hanak According to Gruber, the Apple TV 4K is being sold at an adequate price. For $180, you get a device with an Apple A10 processor, which is also found in last year's iPhones, and will thus replace the function of not only a multimedia center, but also partly a game console. But that $180 is also the cost of producing Apple TV, which means that the Californian company sells it without any margin.
A similar situation is happening with the HomePod. According to Gruber, it is even sold below the cost price, which, in addition to the production itself, also includes the development or programming of specific software. On the other hand, he can't understand why the HomePod is so much more expensive than other smart speakers. Even so, Gruber believes that Apple is selling its speaker at a loss. According to initial estimates, the production of the HomePod costs approximately 216 dollars, but this is purely the sum of the prices of individual components and does not take into account the other, already mentioned factors that increase the price.
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Speculations even suggest that Apple is working on cheaper variants of both devices. The cheaper Apple TV is supposed to have similar dimensions to, for example, the Amazon Fire Stick, and the HomePod is supposed to be smaller and should have less power.
Gruber also noted that he's not even sure about the price of the AirPods. He can't guess if they're too expensive and he can't prove it in any way. But he adds that the longer things are in production, the cheaper they are produced, as the cost of individual components falls. According to the journalist, the other products are not expensive either, because Apple simply develops unique devices that justify their price.
Yes, because the next expansion of the already underrated product portfolio is exactly what Apple needs, isn't it. Just like after r85, clouds of products with no clear vision.