Despite the fact that the most recent Apple TV 4K model is $50 less expensive than the previous generation and has twice as much storage, it is also rumored that Apple is going to create an even more economical Apple TV model.
The new Apple TV 4K already has a cheaper starting price of $129 than the previous model’s $179, but astute Apple analyst Ming-Chi Kuo predicts that the price of the following-generation Apple TV may be considerably lower. The “sweet spot” for the Apple TV, according to Kuo, would be a price below $100, and he added that he anticipates the following-generation model to be even “more inexpensive.”
There is precedent for a sub-$100 Apple TV because the second-generation (2010) and third-generation (2012) models were both initially priced at $99, and Apple then reduced the price of the third-generation device to $69 Apple could compete more effectively with less-priced streaming devices offered by companies like Google, Amazon, and Roku if it offered an Apple TV around this price bracket. Another possibility is that Apple will release two generations of the Apple TV at once, as it has in the past, and the recently announced model will continue to be available for roughly $99 less.
The first report from The Information in 2018 claimed that Apple was developing a less costly version of its $149 Apple TV dongle. Tim Twerdahl, an Apple video, and audio marketing executive, spearheaded the idea. Based on his experience managing comparable initiatives at Netflix and Amazon, he said that a low-cost TV set would make it more accessible for people to access Apple TV+.
According to a subsequent report from last year, Greg Joswiak and Phil Schiller overruled Twerdahl and insisted that Apple should not start producing inexpensive, low-margin devices because doing so could harm the company’s reputation for high-quality goods. As a result, Twerdahl’s project for a low-cost TV device was allegedly abandoned. According to reports, Apple decided that creating apps for Apple TV+ on non-Apple platforms like those from Samsung, Roku, Amazon, Sony, and Microsoft would be a good middle-ground solution. This decision was in line with earlier worries expressed by executives like Eddy Cue that Apple TV+ would need to be available on a variety of devices.
The most recent speculation from Kuo may indicate that the low-cost Apple TV project is still alive after all. The new Apple TV’s reduced price could be a sign of Apple’s renewed interest in raising the price of the product. Apple is aiming to upsell buyers to the $149 model with 128GB of storage, Ethernet, and Thread support, but even if they succeed, the device will still be a significantly better deal than the previous model with 32GB or 64GB of storage for $179 or $199. Apple TV+ is currently accessible on devices like Fire TV and Roku, but a more reasonably priced Apple TV model might boost sales and help the streaming service, which competes with services like Netflix and Disney+, get more members.
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