Amber Neely
Analyst Ming-Chi Kuo took to Twitter to suggest that Apple may drop the price of the Apple TV even further in future releases to capture a larger market share..
On Tuesday, Apple announced its newest Apple TV 4K. The model saw some predictable upgrades, including increased storage and a more powerful A15 chip.
But alongside the upgrades, the device also saw a $20 price cut — now priced at $129 for the base model, which lacks Thread and an Ethernet port.
In May, Kuo had suggested that Apple would drop the price when they launched the new Apple TV.
He noted that doing so would help guide customers toward Apple's services, such as Apple TV , Apple Arcade, and Apple Music.
Now, the analyst predicts that Apple may drop the price even further with the next generation.
A new Apple TV 4K with a price drop (starting from $129) reflects the expected improved cost structure. It can help shipments, but the drop should not be enough. The sub-$100 price should be the sweet spot for Apple TV, so I expect the next-gen will be more affordable. https://t.co/pOkEHT4UFb
— (Ming-Chi Kuo) (@mingchikuo) October 19, 2022
He believes that the Apple TV price drop could help move more units but doesn't think that it is quite enough. Kuo suggests that Apple should aim for a sub-$100 price point in the future.
When the Apple TV 3 was $69 and still capable of 1080p streaming, it didn't appreciably increase the market share of the unit. Furthermore, the Apple TV is typically sold to consumers already in the ecosystem with an iPhone, iPad, or Mac, so it's not clear how Kuo's suggestion will draw more consumers into Apple services.
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5 Comments
If you want all the capabilities you buy the higher end one now, I bet previously most people bought the 32GB model. The price drop is just to upsell to the higher priced model. It will definitely work on me…
Price drops for ATV are pretty meaningless until you get down to firestick 4K max or Chromecast with Google Tv territory, eg around USD$50-$60. That would require a completely different kind of ATV to meet cost of production.
Better innovation and more value then lowering prices. TV/video is still a hobby for Apple.
My $34 4K Roku stick has the latest Dolby protocols, is fast, and works great. Apple is still not remotely competitive in this market even with the reduced price. Just my opinion I guess.
...everything but...
"Immersive sound. Rich Dolby Atmos, 5.1 and 7.1 audio deliver surround sound that feels like it’s coming from every direction on Dolby Atmos–compatible sound systems. Or pair two HomePod mini speakers with Apple TV 4K for room‑filling stereo sound with everything you watch. You can also connect AirPods for personalized Spatial Audio that follows the movement of your head."
7.1 is a help, although it still seems to rely on external decoding - I still keep wishing for built in decoding that could use AirPlay (aka no spaghetti of wires) to simple remote or audiophile grade speakers and amps, or existing systems for more ecologically sound, economical and / or custom higher quality sound...