As a follow up to my post above, Roku just released
4Q 2020 results.
Player revenue: $178.7 million
Player gross profit: $4.6 million
Player gross margin: 2.6%
A $50 Apple TV device would be a loss for Apple.
The idea that Apple should release one is a bad idea. Tim Cook once said that Apple isn't interested in competing on the low end market because it cannibalizes their own sales and it devalues their image. Apple prefers to focus on the user experience vs selling "junk"
While he was referring to low-end iPhones at the time, the philosophy applies to all their products.
Apple CEO Tim Cook said the company isn’t interested in producing a cheap iPhone so it can compete against rivals in what he calls the “junk” part of the smartphone market. “There’s always a large junk part of the market. We’re not in the junk business,” Cook said in an interview [...]
www.forbes.com
“There’s always a large junk part of the market.
We’re not in the junk business,” Cook said in an interview with Bloomberg Businessweek published today. “There’s a segment of the market that really wants a product that does a lot for them, and I want to compete like crazy for those customers.
I’m not going to lose sleep over that other market, because it’s just not who we are. Fortunately, both of these markets are so big, and there’s so many
people that care and want a great experience from their phone or their tablet, that Apple can have a really good business.”
“We never had an objective to sell a low-cost phone,” Cook said in the interview. “Our
primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost.”