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SAN JOSE, Calif. (AP) - Apple TV isn't going to add much to the iPod and Mac maker's riches, according to a market research company that took apart Apple Inc.'s newest gadget.
The wireless streaming video device with a 40-gigabyte hard drive sells for $299 but costs an estimated $237 to make, excluding packaging and marketing expenses, said iSuppli Corp., which has conducted similar breakdowns for other gadgets.
That equates to a "meager 20.7 percent gross margin, compared to 40 percent to 50 percent for previous members of the iPod family," said Andrew Rassweiler, teardown services manager and a senior analyst for iSuppli. "This suggests that Apple is taking a market-penetration strategy for the Apple TV, rather than the simple profit-per-unit approach it has always used in the past."
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