The components in the latest Apple TV, which sells for US$99, may cost less than $64, according to market research firm, iSuppli (http://www.isuppli.com), as reported by “Bloomberg BusinessWeek” (http://www.businessweek.com/technology/content/oct2010/tc2010104_872952.htm).
The most expensive part, at $16.55, is the A4 processor, designed by Apple and manufactured by Samsung Electronics. The same chip is used in the iPad and iPhone 4.
Andrew Rassweiler, an iSuppli analyst who conducted a so-called teardown analysis of the device, says the materials cost of the new model leaves room for Apple to earn a profit. With the original device, the cost of materials was closer to the retail price, he says.