Apple may release a new version of its Apple TV set top box in the second half of 2022, a TF International Securities analyst predicts.
Ming-Chi Kuo wrote in a tweet earlier today Apple’s strategy of integrating hardware, content and service “will help close the gap with its competitors.” He added the new Apple TV model will “improve cost structure,” suggesting the set top may have a cheaper price tag than previous models.
Apple’s latest connected TV model – the second-generation Apple TV 4K – was released in April last year, and includes an upgraded Siri remote, Dolby Vision surround sound support among other features. The price for the set top starts at $179, as shown on the company’s website.
There was talk last year about Apple possibly releasing a cheaper version of its Apple TV hardware, details that came from a The Information report in September. Executive Tim Twerdahl, who was at Roku and Amazon’s Fire TV for some years before joining Apple, supported a less expensive Apple TV.
But that idea was shot down by his fellow executives Greg Joswiak and Phil Schiller, the report wrote, as they felt such a move would “tarnish” the company’s reputation for building premium products.
Apple’s TV set top bears a hefty price when compared to connected TV devices sold by its competitors. Roku’s Streaming Stick 4K, for example, costs $49.99 and Roku sells a couple of cheaper alternatives with slightly fewer features. Amazon offers a similar 4K streaming stick for its Fire TV – for just above $50. Whereas Apple currently doesn’t have its own branded streaming stick on the market.
Perhaps Apple is prioritizing Apple TV+ revenues over its hardware rollouts. CFO Luca Maestri mentioned in the company’s recent earnings call Apple had a record March quarter for video services revenue, but did not disclose any other revenue or customer specifics.
Contrasting with the price of an Apple smart TV, an Apple TV+ subscription costs $4.99 per month – cheaper than most basic plans of other major streaming services.