Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
I listened to the show, he was speculating on no evidence. This is supposed to be a joke, why is this news?

It is news because there is nothing significant to write. Apple's next event is far off, and they're still too few rumors about unannounced products that haven't leaked to talk about, hence turning to the ever-reliable Gruber for some news...
 
  • Like
Reactions: iSilas and MartiNZ
I do believe Apple sells those two product at cost or at slight loss. Amazon sells Kindle and Echo dot at a loss all the time. Amazon also sells books, ebooks, and audiobooks at a significant loss from time to time. In those highly competitive but highly scalable markets, they do that. Apple doesn't have pricing power in those markets.
 
  • Like
Reactions: bobmepp and n0-0ne



On the latest episode of The Talk Show, Daring Fireball's John Gruber discusses Apple TV and HomePod pricing and whether Apple is charging too much for some of its products.

According to Gruber, Apple is actually selling the 2017 Apple TV 4K at cost, suggesting the device costs Apple $180 to make. As for the HomePod, Gruber said he believes Apple sells it at a loss.

appletvhomepod-800x413.jpg
Apple sells the 4K Apple TV for $180, and the HomePod for $349, though the HomePod at least is often available at a discount from third-party retailers. When the HomePod was released, estimates suggested it cost $216 to make in raw components, which does not factor into account other costs like research and development, software creation, and more.

Both the Apple TV 4K and the HomePod are priced higher than competing products from other companies like Amazon and Google, and rumors have suggested that Apple is working on lower-cost versions of both devices. For the Apple TV, Apple is said to be developing a stick-style Apple TV device, and for the HomePod, rumors suggest a smaller, cheaper model is in the works.

Gruber said that he also suspects the AirPods are priced close to cost as well, though he's not sure and can't prove it. And, of course, overtime, things become less expensive to manufacture as component costs come down. Something that cost $180 in 2017 might not cost the same in 2019, as an example.

Overall, Gruber says that Apple isn't pricing its products too high, it's developing products that are too good.

"If you think it's a problem that these products are so expensive compared to their competition, that too few people buy them, it's not because Apple is charging too much, it's because Apple engineered and designed too good of a product," said Gruber.

(Thanks, Ryan Jones!)

Article Link: Gruber: Apple TV is Sold at Cost, HomePod at Slight Loss

How can an apple tv be sold at cost when its running an a10? Thats a legacy chip. The Apple TV is made out of plastic and is tiny. I cant believe that the component cost there is more then like $80. Homepod? I could see that being around $250 in component cost but $350 is just exorbitant if you know anything about the speaker market $350 in straight component cost can get you far more speaker then a homepod albeit less nice in appearence so that seems dubious
 
Last edited:
gruber is trying a bit too hard to make sure he gets some kind of front row access to WWDC 19.

there is much to dislike in this series of comments from him this time.
its suspect.

he usually is a shill. but this time he has shown his hand.
be careful of what this guy says from now on.

And if Gruber says it, it must be true.

When was the last time John Gruber wrote something that was so profound you read it and said, "That's interesting, I never would have thought of that." A visionary he is not.
 
Funny as hell.

There is no question that the HomePod sounds better than any of the other home voice enhanced speakers. No way. I've worked with hem all. So yes, it is probably more about good sound than being more crap from Amazon. And yes, it feels like a far beer build. There are plenty of people who prefer to buy subpar products. Android's made a huge market of it.
[doublepost=1549071616][/doublepost]
gruber is trying a bit too hard to make sure he gets some kind of front row access to WWDC 19.

there is much to dislike in this series of comments from him this time.
its suspect.

he usually is a shill. but this time he has shown his hand.
be careful of what this guy says from now on.

Why?
 
  • Like
Reactions: MrUNIMOG
High quality products cost money. Gruber knows more about this industry than just about anyone. I'm guessing he's pretty close to on the mark. I've never felt anything I purchased from Apple was too expensive for what I get. Even the new IPhone XS Max, while expensive, was worth every penny. I don't buy cheap steaks or cheap computer gear. I get what I pay for.
these 200 dollar ram upgrade for 16gb option sure worth every penny right?
 
Not only is this sort of thing good for the "ecosystem," but if this is true, it is actually a smart strategy that would make sense in the long run. Think of both of these products as similar to video game consoles that help to make money selling software. But with the Apple TV, the extra revenue will come from movie rental and sales as well as other media transactions. I've been bitter about the long neglect and eventual discontinuation of the Thunderbolt Cinema Display and the Airport routers, but if Tim Cook understands the "ecosystem" thing enough that he decide to sell both of these products at basically cost, then I'd be impressed.
 
Conveniently leaves out iphone and macbook.

Overall, Gruber says that Apple isn't pricing its products too high, it's developing products that are too good.

"If you think it's a problem that these products are so expensive compared to their competition, that too few people buy them, it's not because Apple is charging too much, it's because Apple engineered and designed too good of a product," said Gruber.

give me some of whatever this dude is smoking
 
That “fixed it for you” thing was funny the first time someone used it, maybe sort of funny the next 100 times, but now after it’s been regurgitated five billion times it’s neither original nor funny.
[doublepost=1549069778][/doublepost]

Thanks. I was hoping some anonymous Internet forum poster could confirm whether a well-known and reputable journalist’s latest work is credible.
An anonymous poster gets rebuked by another anonymous poster.
 
Makes sense. For a marketing focused company like Apple, prices correlates more to the perception of the value of the products by consumers, not the cost. It makes sense then for the non primary products such as Apple TV to be sold closer to cost or less as they are not a must-have device for consumers, unlike a phone.
And those that still think the prices of AirPods or HomePod are expensive, you should actually see the competitors as they are not that far off in terms of pricing, and some even less user friendly.
 
  • Like
Reactions: MrUNIMOG
The cost of components isn’t the only cost any item has. There is also advertising, shipping, warehousing and the ever present clerical/accounting. I have no idea how much or how little Apple makes on these products but I think people are over estimating what Apple makes as a profit on these two particular products because they haven’t sold up to expectations, so that is increasing the cost at least for storage.
 
  • Like
Reactions: MrUNIMOG
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.