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With the development cost of moving from Mac OS X to iOS and the continued investment needed to face increased competition from devices like Google's offering, Apple may well be just breaking even in order to maintain a presence in this market. It'll definitely be interesting to see where they go from here. Apple may still consider it a hobby, but I'm sure there will soon be investor pressure to actually make money off it.

This is Apple we are talking about... not HP. The investors trust Apple and will never force them to do anything.
 
That's a really low margin on a new device.
The gross margin is very low for U.S. sales. It is not quite so low for the international market.

Admittedly, this device more than any other iDevice will probably have better adoption within the United States, at least initially as most of the content deals are with American content providers and networks.
 
An incredibly low margin for a company often criticised for its 'tax'

Apple isn't "criticised" for any "tax". The "Apple tax" is an invention of Microsoft marketing. Apple charges what people are willing to pay and makes a healthy profit. But unlike taxes, which you have to pay, nobody forces you to buy Apple products.

Microsoft used to force OEMs to pay for one copy of Windows for each computer they shipped, even when a customer then installed Linux on that computer. Now _that's_ a tax, having to pay Microsoft when you don't even buy their product.
 
Ok, so does anyone know for sure that it plays any video you have in iTunes?

The Apple website, obviously, isn't going to brag about the fact that you can stream ripped-DVDs to it. My old Apple TV does that, does the new one? I'd assumed so, but I just realized I haven't seen that confirmed anywhere. (The Apple site only mentions movies you buy from iTunes, of course.)

Any video that plays in iTunes will play on the new Apple TV.

I have the new Apple TV, and everything streams over without a problem.
 
So how come it costs 2.5 times that in England? $99 is not £99, Apple.

Apple has almost always priced a device to a price point for the long term (at least a year in length, often multiple years). As a result they pick price points that they feel can maintain reasonable margins, deal with currency, and tax/tariff fluctuations while still falling in the range of what the market will bare.

Currently it is about 1.6 pounds to the dollar (trending down from 2ish over the last few years)... that makes $99 about £63 currently. Then you have VAT of 17.5% which makes it £74 and soon VAT will be 20% which would make it £75. You also have some amount of import taxation as well as regulator/industry fees for devices of this type (can't find exact information).

So yeah at this point Apple is likely making a little more of UK customers (likely less then 20% more) but they are priced for consistency and a long term price point.

(and as other note the price you see in the US does NOT include sales tax, once you add that in you are even closer to price parity)
 
You mean 1.5, right? Not that 1.5 times doesn't suck but at least it isn't more than twice as expensive.

EDIT: Once you subtract out VAT it costs $134, so really it's closer to 1.3 times more.

In the US we pay sales tax too. So in Chicago, $99 is $111.38 with 12.5% sales tax.
 
Ok, so does anyone know for sure that it plays any video you have in iTunes?

The Apple website, obviously, isn't going to brag about the fact that you can stream ripped-DVDs to it. My old Apple TV does that, does the new one? I'd assumed so, but I just realized I haven't seen that confirmed anywhere. (The Apple site only mentions movies you buy from iTunes, of course.)

This is what I'm hoping for.
 
Any video that plays in iTunes will play on the new Apple TV.

I have the new Apple TV, and everything streams over without a problem.

Awesome.

I see lots of people saying "it only rents!" on many threads. Glad to see that's just ignorant people.

If they actually add apps to this new one I'll replace my old Apple TV with it. Wanted to make sure I wouldn't lose that, though.
 
Awesome.

I see lots of people saying "it only rents!" on many threads. Glad to see that's just ignorant people.

If they actually add apps to this new one I'll replace my old Apple TV with it. Wanted to make sure I wouldn't lose that, though.

I, too, can attest to this. I have a few movies and home videos and a ton of music videos, and they all stream nicely to my :apple:TV. Like the other user said...if it plays in iTunes, it'll work with the ATV.


I have two of the original type AppleTV's, and the thing I hate the most is how unresponsive the UI can be at times. It can take 30 seconds to respond to a click on the remote. I'm not sure if that's because I'm syncing to my iTunes and I have a HUGE media library there, or if it's just overtaxing the processor (I'm hooked up on GigE, not wireless, so that shouldn't be the issue).

I'd replace them just for a better UI... and Netflix is a nice bonus.

Reviews or comparisons anyone?

To answer your question: it is VERY responsive. Things work instantly, regardless of what you're trying to do. I have a pretty hefty library myself, and when I go to my computer option, it might take all of 2 seconds to make my entire library available to me (that includes the zillion pictures I've authorized for sharing to the appleTV). I can't brag enough about this product. AirPlay in 4.2 will make it even better.
 
Awesome.

I see lots of people saying "it only rents!" on many threads. Glad to see that's just ignorant people.

If they actually add apps to this new one I'll replace my old Apple TV with it. Wanted to make sure I wouldn't lose that, though.

Yeah you can access all of your music, photos, and videos on your computer from the new Apple TV. Even Blu Rays you ripped as long as they are in a supported format.
 
Yeah you can access all of your music, photos, and videos on your computer from the new Apple TV. Even Blu Rays you ripped as long as they are in a supported format.

Yep! And the image is quite stunning; even in 720P. And I was a hater on Apple only doing 720P and not 1080P.
 
At $99, I'm thinking of buying a second one for the bedroom.

I never would have considered doing that at the cost of the original AppleTV.

(Then again, odds are that I move my original AppleTV to the bedroom until the new beastie gets an app store...)
 
Yeah you can access all of your music, photos, and videos on your computer from the new Apple TV. Even Blu Rays you ripped as long as they are in a supported format.

not only can you stream any iTunes content (including ripped movies), but you can skip the ATV2 remote and go directly to your iDevice and access all your items to stream that way... really works well, I especially enjoy using my iPad that way.
 
I see lots of people saying "it only rents!" on many threads. Glad to see that's just ignorant people.

They're talking about how the aTV interface to the iTunes store only has rentals, you can no longer buy a video straight from the TV. So those people are right about that specific. You can still buy iTunes content, but you have to do it from a computer and then stream it from there. Personally I think it was dumb they took out video content purchases from the interface and I bet they reappear at some point.
 
Does the cost of the exclude the price of the 'remote' when the apple remote retails by itself for 19? what is the component cost of the remote.

If you consider that makes the actual price of the ATV2 w/out remote $80. (not that you can purchase it that way)

just curious how that plays a factor in to the math.
 
not only can you stream any iTunes content (including ripped movies), but you can skip the ATV2 remote and go directly to your iDevice and access all your items to stream that way... really works well, I especially enjoy using my iPad that way.

The Remote App is amazing...however, I've noticed in the last 2 days that the "menu" button at the bottom of the :apple:TV controller won't respond, meanwhile, all other touches and gestures work perfectly. Anyone else experiencing this?
 
So how come it costs 2.5 times that in England? $99 is not £99, Apple.

(and to counter any arguments from people who haven't compared stores - this is a lot more than the "EU tax". iPods for example aren't £=$)

You know all of the stories that come up saying "The EU forced Apple to do X" like the recent change to the iOS developers agreement to allow 3rd party development environments? Thats why Apple lets $=€=£. Apple is letting Europeans cover extra costs for complying with the EU regulations.

The UK gets hit harder since the pound is higher than the euro, but if they made the UK and Eurozone prices roughly equivalent and both higher than the US it would be so much more obvious that they are punishing you! Either that, or they think the Dollar is due for a major comeback :rolleyes:
 
Awesome.

I see lots of people saying "it only rents!" on many threads. Glad to see that's just ignorant people.

If they actually add apps to this new one I'll replace my old Apple TV with it. Wanted to make sure I wouldn't lose that, though.

I am hoping for an XBMC or even better a Plex app so that I can replace my patchsticked two Mark I's with Mark II's. I need something that will let the box act as a MythTV frontend as my current ones do.

They're talking about how the aTV interface to the iTunes store only has rentals, you can no longer buy a video straight from the TV. So those people are right about that specific. You can still buy iTunes content, but you have to do it from a computer and then stream it from there. Personally I think it was dumb they took out video content purchases from the interface and I bet they reappear at some point.

They probably didn't want to have to have the aTV worry about whether it still had enough space available to store the downloaded purchase, or the complaining from users who didn't move a purchase back to their computer who can't make another purchase (but it worked yesterday on a different movie!)
 
Ok, so does anyone know for sure that it plays any video you have in iTunes?

The Apple website, obviously, isn't going to brag about the fact that you can stream ripped-DVDs to it. My old Apple TV does that, does the new one? I'd assumed so, but I just realized I haven't seen that confirmed anywhere. (The Apple site only mentions movies you buy from iTunes, of course.)

It better! I would assume so just as you can surely play CDs you ripped over it too and I don't see the difference from a legal stand point. Someone with one please let us know... :)
 
So how come it costs 2.5 times that in England? $99 is not £99, Apple.

(and to counter any arguments from people who haven't compared stores - this is a lot more than the "EU tax". iPods for example aren't £=$)

Payback for burning down the White House. ;)
 
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