The Apple TV was a success, don’t let anyone tell you otherwise. With 8 million units sold, it’s outpaced other offerings like Microsoft’s Zune and just about every other media streamer on the market. The idea that the Apple TV is a failure stems from the fact that it hasn’t come close to other Apple products in terms of volume. All that may be about to change.
Reports out of the Apple rumour mill have come rolling in stating that Apple TV is ready for a refresh. The new unit will apparently do away with the OS X underpinnings that power the current version (and make it so delightfully hackable) and instead shift to iPhone OS 4.0 (it’s going to need a better name if it’s going to be in so many devices.) The hardware is due for an alteration as well, with the new A4 processor under the hood and no on-board storage.
You read that right; if the rumours are correct Apple is going all-in on a streaming strategy for media. And the “one more thing”? The price being reported is $99.
This doesn’t seem that far fetched. The iPad teardown has established that this device could be sold in the $99-$149 price range and still net Apple over 10 points of margin at the low end. The idea that it would act as a loss leader for both the iTunes store and (potentially) for Mac sales justifies the lower-than-Apple-average margin/price combo.
Apple doesn’t have a strong presence in the living room right now; it’s a place Microsoft pledged to own with Xbox and with Windows Media Centre but has had trouble capturing. If Apple can deliver a compelling experience at $100 it may have very quickly and quietly won a war it wasn’t even fighting until today.
