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Apple TV 4K And AirPods Sold At Cost, HomePod At Loss: Report

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Apple is selling its Apple TV 4K and AirPods at cost, while its HomePod is being sold at a loss.

These claims were made by writer and blogger John Gruber of Daring Fireball, who cites a "reliable little birdie."

Glimpse Of Apple's Pricing Scheme

In one episode of his "The Talk Show" podcast, Gruber discusses the pricing of the aforementioned products, particularly about whether Apple is charging too much for them or not.

The notable takeaways boiled down to these points: the 2017 Apple TV 4K and AirPods are sold at cost and the HomePod is sold at a loss. According to him, the cost to manufacture the set-top box is about $180.

"Like they really are like a $180 box. And you think, 'Wow, this is amazing. It has an A10 processor which we know is super fast, and it has crazy good graphics.'"

The Apple TV 4K does sport an A10X Fusion processor and a high storage capacity (32 GB or 64 GB), not to mention that its Siri Remote comes with a mic and a touchpad to boot. In other words, it's pretty clear why it's priced higher compared with the competition.

Meanwhile, here's what he said about the HomePod:

"Why is HomePod so much more expensive than these other speakers you can talk to? HomePod, I actually have reason to believe, Apple actually sells it at a loss."

In February 2018, a report said that it costs Apple $216 to make a HomePod. However, the estimation doesn't include other expenses, from the investments in R&D to the software development, just the raw materials used.

It's unclear whether his claims are accurate or not, but as AppleInsider points out, the Cupertino brand could be making these products as affordable as reasonably possible in support of its other services, such as Apple Music, iCloud, and iTunes. The company is even rumored to have a Netflix-like video-gaming service in the pipeline.

'Too Good'

Gruber says that the reason Apple is selling these products at a relatively higher price point is because it "engineered and designed too good of a product." Put differently, he says that the company isn't charging too much for them.

The 4K Apple TV is available for $180, the HomePod for $349, and the AirPods for $159.

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