Apple Telly can't make money

Business Weak, quoting iSuppli, says that the components and materials used to make Apple TV cost $237. Apple flogs the thing for $299, that would leave a gross profit of $62, or about 20 per cent, before marketing costs.

Since indications are that people would rather buy a rabid hamster with sharpened teeth than an Apple telly, this means that Jobs' Mob must have a lot of stock waiting on the shelves which cannot be sold.

Isuppli said that it made some very aggressive assumptions with this device, and assumed low prices on the components. If the costs were much higher, it says, then it looks like Apple was subsidising the product in a hope of making up the difference with video content deals.

More here. µ