iSuppli: Apple TV's Prodcution Cost Is Only $64

Apple TV carries a Bill of Materials (BOM) of $61.98, including additional items boxes with the product, based on a preliminary estimate from iSuppli. When the manufacturing costs are added in, the second-generation Apple TV's production cost rises to $63.95, according to iSuppli. That's about a quarter of the production cost of the previous Apple […]

Apple TV carries a Bill of Materials (BOM) of $61.98, including additional items boxes with the product, based on a preliminary estimate from iSuppli. When the manufacturing costs are added in, the second-generation Apple TV's production cost rises to $63.95, according to iSuppli. That's about a quarter of the production cost of the previous Apple TV ($237) back in 2007. Since that one sold for $300, Apple is still making more as a percentage (minus marketing, R&D, etc,etc,) than they did before (35% new vs. 20% old).

The A4 chip and the 8GB of Flash are the most expensive bits in the new version but they only come in at $16.55 and $14 respectively.

Intel's Pentium Chip ($40) plus the chipset ($28) on the previous model alone cost more than the whole new Apple TV today. Clearly, the present day equivalent of that chip is much more powerful and might be cheaper but Intel just doesn't sell SoCs for $16.

[Source]