Kuo: Cheaper Apple TV coming later this year to ‘close gap with competitors’

A new Apple TV streamer will launch in the second half of 2022, according to a trusted analyst. And there is a hint in the prediction that the device will cost less than its predecessors.

A cheaper version of Apple’s set-top box could help it grab a bigger share of the set-top box market. And he could certainly use the boost.

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Expect Apple TV in 2022 with a better ‘cost structure’

Although sometimes overlooked, a TV box is often the centerpiece of a home entertainment setup. Apple’s efforts to be a player in this market have so far met with mixed success against competitors like Roku and Amazon.

But Cupertino is still trying and has new hardware on the horizon. “Apple will launch a new version of Apple TV that improves the cost structure in the second half of 2022,” according to Ming-Chi Kuo, an analyst at TF International Securities, in a tweet sent on friday.

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It’s not 100% clear what Kuo is referring to when he says the upcoming tvOS streamer “improves the cost structure.” It is apparently an indication that the device will be cheaper to manufacture. But that doesn’t automatically mean Apple will sell it for less.

Although I could. It doesn’t take a genius to figure out that price is Apple TV’s weak point. Its most affordable version is $149, while a basic Roku Express is $25. That’s why more than half of American households own a Roku. Apple has only a small part.

But Kuo, for his part, is optimistic about Apple’s future in this market. “I think Apple’s aggressive strategy of integrating hardware, content and service in the midst of the recession will help close the gap with its competitors,” the analyst said. He is referring to the company that offers a set-top box and Apple TV+, a streaming service that is showing signs of growing in popularity.

His comment on Friday about “integrating hardware, content and service” raises the possibility that Cupertino could offer a discounted Apple TV box to people who subscribe to a year of Apple TV+.

Comparing Apple TV and oranges

No matter what cost structure improvements Apple makes, it will never be able to offer a $25 Apple TV to directly compete with the Roku Express. The company has opted for streaming devices that are also game consoles.

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Your set-top boxes can play most of the games available through Apple Arcade. That forces them to have a fairly powerful processor. The version of Apple TV released in 2021 included an update to the Apple A12 chip, and the 2022 model could have an A13 or A14.

The very affordable Roku just isn’t powerful enough to be a gaming console. Your hardware isn’t up to the job. But it is cheap to do. The same goes for the $40 Amazon Fire TV Stick.

Apple will have to find ways to make its streaming device more competitive with these budget models if it wants to grab a bigger share of the market.


The source: https://nguyendiep.com
Category: news

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