My point is that continued revenue from services can be way more profitable than just a one time hardware profit in this case.
How much would you guess an AppleTV+remote cost for Apple? Even if the net profit was a whopping 30-40%, they'd be only making $30-40 per device at most (for a product with say a 5 year life span). It seems hardly worth the endeavor.... basically they are just giving out at that point... they probably make more money on iphone cases...
Why did Apple strip down the $299+ AppleTV down to $99 to have it stream only? (and at *that* time $99 was quite cheap). Apple will always be at the higher end, but selling $100 devices just for a bit of profit and no competitive advantage doesn't sound like something Apple would do. It's their ecosystem that they want to tie all their devices to and profit from. With hardware that cheap, the real profit is in selling services or apps, etc. Google, Amazon and Apple all know it.