CNET reports on claims by Roku CEO Anthony Wood that Apple TV is a money-loser.
Apple TV is essentially an accessory for the iPad. They lose money, which is unusual for Apple,” he said Thursday, speaking at the Recode conference here. “If you’re losing money, why would you want to sell more.
The CNET reporter failed to notice the flaw in Wood’s assertion. The Apple TV was estimated to cost $64 to build back in 2010. I’m sure costs would have gone down in the past few years. Given that the Apple TV sells at $99, how is that making a loss?
Also, it is an incredible lack of insight to miss the true value of a content providing device. You need to consider profits generated from the content served by the device. Just ask Amazon.
Oh, speaking of Amazon, Roku has bigger problems to deal with than the profits from Apple TV.