The Apple TV is a great device for anyone who lives purely within the Apple ecosystem. How Apple got there is particularly interesting. No new functionality is added, but the device just gets cheaper for Apple to make. The small increment in model gives you an indication of the magnitude of change here. And that’s exactly what appears to have happened with the latest update to the platform.Īpple still refers to this new Apple TV as a 3rd generation platform, and it doesn’t introduce any new features, but it does carry a different model string: Given the low (relative to Apple’s other products) price point for the Apple TV, and steadily ramping shipment volume, it makes sense that the device would be a target for cost optimization. That’s not a lot of money for Apple, but it’s a business of considerable size. That’s $495M in revenue for the year just from the Apple TV. Long term if the Apple TV is to become something much more than it is, it’ll have to be more aggressive in delivering content, but for now it exists as a very successful experiment.Īpple shipped five million Apple TVs last year.
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A test for the infrastructure, the delivery mechanism and a test of how to work with content companies. Even Intel recently threw its hat into the ring.Īpple famously refers to the Apple TV as a hobby, but I view it as more of an experiment.
Other companies are working on the same problem, with different solutions. It’s Apple’s attempt to augment the Netflixes and Hulu Pluses of the world with an on-demand cable TV alternative.
The Apple TV is an incredibly relevant device today.
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