Apple Said To Sell Apple TV At Cost, HomePod At A Loss

Well-noted Apple blogger Gruber discussed the price strategy of Apple TV and HomePod and whether Apple is overpriced for its products in th...

Well-noted Apple blogger Gruber discussed the price strategy of Apple TV and HomePod and whether Apple is overpriced for its products in the latest issue of The Talk Show podcast, in which he stated that the Apple TV is actually sold at cost, as for the HomePod smart speakers, he believes that the company sells it at a loss, though it's possible not a very big loss.

According to Gruber, he heard from a reliable source that tells him Apple sells Apple TV at cost, which is $180, and that's essentially what Apple priced the product at. And HomePod too, he says, that Apple sells the smart speaker at a loss, although someone has estimated that it cost $216 to make.

One thing I’ve heard from a reliable little birdie is Apple effectively sells [Apple TV] at cost. Like they really are like $180 a box. And you think, ‘wow, this is amazing, it has an A10 processor, which we know is super fast, and has crazy good graphics.’ I’ve heard the same thing about HomePod too. Like, why is HomePod so much more expensive than these other speakers you can talk to? I have reason to believe Apple actually sells it at a loss. I can’t prove it, I don’t think it’s a big loss.

Gruber also believes that the price of AirPods is also very close to the cost price, although he is not sure and can't prove it. In general, Gruber believes that Apple has not overpriced its products, but rather their products are too good, and that cost too much to make and ultimately leads to higher pricing.