El Segundo, Calif. – Apple’s (NASD: AAPL) $99 second-generation Apple TV
device carries a bill of materials of $61.98, and with manufacturing figured in costs the company a total of $63.95 to produce, according to a
teardown analysis by iSuppli. "The first Apple TV was built like a net top
computer. The architecture was basically a stripped down, small-form-factor
desktop PC," said iSuppli analyst Andrew Rassweiler. "The second
generation Apple TV is more like an iPad or iPod Touch with no display."
Apple TV’s A4 processor core, Wi-Fi/Bluetooth chip and power management chip
are the same building blocks used in the, iPad, iPhone 4 and iPod Touch."
The firm said the new model "offers a dramatically improved ratio of hardware
cost to retail price."
Rassweiler also praised the Apple TV remove control,
which "appears to machined from a solid piece of aluminum."
of this, the electronics of the device must be slid in through small holes on
the side, similar to putting a ship in a bottle. It’s a clever and a
detail-oriented piece of design that makes the remote very pricey and very
unique to Apple."