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Gruber: Apple TV is Sold at Cost, HomePod at Slight Loss
http://bit.ly/2MI3UeO
On the latest episode of The Talk Show, Daring Fireball's John Gruber discusses Apple TV and HomePod pricing and whether Apple is charging too much for some of its products.
According to Gruber, Apple is actually selling the 2017 Apple TV 4K at cost, suggesting the device costs Apple $180 to make. As for the HomePod, Gruber said he believes Apple sells it at a loss.
Both the Apple TV 4K and the HomePod are priced higher than competing products from other companies like Amazon and Google, and rumors have suggested that Apple is working on lower-cost versions of both devices. For the Apple TV, Apple is said to be developing a stick-style Apple TV device, and for the HomePod, rumors suggest a smaller, cheaper model is in the works.
Gruber said that he also suspects the AirPods are priced close to cost as well, though he's not sure and can't prove it. And, of course, overtime, things become less expensive to manufacture as component costs come down. Something that cost $180 in 2017 might not cost the same in 2019, as an example.
Overall, Gruber says that Apple isn't pricing its products too high, it's developing products that are too good.
"If you think it's a problem that these products are so expensive compared to their competition, that too few people buy them, it's not because Apple is charging too much, it's because Apple engineered and designed too good of a product," said Gruber.
(Thanks, Ryan Jones!)
This article, "Gruber: Apple TV is Sold at Cost, HomePod at Slight Loss" first appeared on MacRumors.com
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from MacRumors: Mac News and Rumors - All Stories http://bit.ly/2BehH8D
On the latest episode of The Talk Show, Daring Fireball's John Gruber discusses Apple TV and HomePod pricing and whether Apple is charging too much for some of its products.
According to Gruber, Apple is actually selling the 2017 Apple TV 4K at cost, suggesting the device costs Apple $180 to make. As for the HomePod, Gruber said he believes Apple sells it at a loss.
One thing I've heard from reliable little birdie is Apple effectively sells [the Apple TV] at cost. 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, it has crazy good graphics.Apple sells the 4K Apple TV for $180, and the HomePod for $349, though the HomePod at least is often available at a discount from third-party retailers. When the HomePod was released, estimates suggested it cost $216 to make in raw components, which does not factor into account other costs like research and development, software creation, and more.
I've heard the same thing about HomePod too. 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. I can't prove it. I don't think it's a big loss.
Both the Apple TV 4K and the HomePod are priced higher than competing products from other companies like Amazon and Google, and rumors have suggested that Apple is working on lower-cost versions of both devices. For the Apple TV, Apple is said to be developing a stick-style Apple TV device, and for the HomePod, rumors suggest a smaller, cheaper model is in the works.
Gruber said that he also suspects the AirPods are priced close to cost as well, though he's not sure and can't prove it. And, of course, overtime, things become less expensive to manufacture as component costs come down. Something that cost $180 in 2017 might not cost the same in 2019, as an example.
Overall, Gruber says that Apple isn't pricing its products too high, it's developing products that are too good.
"If you think it's a problem that these products are so expensive compared to their competition, that too few people buy them, it's not because Apple is charging too much, it's because Apple engineered and designed too good of a product," said Gruber.
(Thanks, Ryan Jones!)
Buyer's Guide: Apple TV (Don't Buy), HomePod (Neutral)
This article, "Gruber: Apple TV is Sold at Cost, HomePod at Slight Loss" first appeared on MacRumors.com
Discuss this article in our forums
from MacRumors: Mac News and Rumors - All Stories http://bit.ly/2BehH8D
Apple Exec Overseeing Siri Departs Role
http://bit.ly/2RxlanZ
Bill Stasior, who has been heading up Apple's Siri team since 2012, recently left his role as the leader of the voice assistant group, reports The Information.
Stasior was recruited from Amazon in 2012 to oversee Siri following the departure of Siri co-founders Adam Cheyer and Dag Kittlaus. Cheyer and Kittlaus had joined Apple when the company originally purchased Siri in 2010, but did not stay long.
According to The Information, Stasior has stepped down from his role as leader of Siri but has not left Apple. The change in leadership is part of a restructuring effort by John Giannandrea, Apple's senior vice president of machine learning and AI strategy, who has taken over the Siri team.
Giannandrea, who has been pushing the Siri team to "focus more on long-term research" rather than incremental improvements, will be looking for a replacement for Stasior.
Giannandrea joined Apple in April 2018 as chief of machine learning and AI strategy, and at the time, it was reported that he would be overseeing both the Core ML and Siri teams. Ginnandrea was later promoted to SVP in December 2018.
Prior to joining Apple, Giannandrea spent eight years at Google, and in the time before that, he founded two companies, Tellme Networks and Metaweb Technologies.
Giannandrea's hiring came amid widespread criticism of Siri, which has shortcomings in comparison to AI offerings from companies like Microsoft, Amazon, and Google. Apple made serious strides improving Siri in 2018 under Giannandrea's leadership, building out the capabilities of the AI assistant with features like Siri Shortcuts in iOS 12.
This article, "Apple Exec Overseeing Siri Departs Role" first appeared on MacRumors.com
Discuss this article in our forums
from MacRumors: Mac News and Rumors - All Stories http://bit.ly/2S744md
Bill Stasior, who has been heading up Apple's Siri team since 2012, recently left his role as the leader of the voice assistant group, reports The Information.
Stasior was recruited from Amazon in 2012 to oversee Siri following the departure of Siri co-founders Adam Cheyer and Dag Kittlaus. Cheyer and Kittlaus had joined Apple when the company originally purchased Siri in 2010, but did not stay long.
According to The Information, Stasior has stepped down from his role as leader of Siri but has not left Apple. The change in leadership is part of a restructuring effort by John Giannandrea, Apple's senior vice president of machine learning and AI strategy, who has taken over the Siri team.
Giannandrea, who has been pushing the Siri team to "focus more on long-term research" rather than incremental improvements, will be looking for a replacement for Stasior.
Giannandrea joined Apple in April 2018 as chief of machine learning and AI strategy, and at the time, it was reported that he would be overseeing both the Core ML and Siri teams. Ginnandrea was later promoted to SVP in December 2018.
Prior to joining Apple, Giannandrea spent eight years at Google, and in the time before that, he founded two companies, Tellme Networks and Metaweb Technologies.
Giannandrea's hiring came amid widespread criticism of Siri, which has shortcomings in comparison to AI offerings from companies like Microsoft, Amazon, and Google. Apple made serious strides improving Siri in 2018 under Giannandrea's leadership, building out the capabilities of the AI assistant with features like Siri Shortcuts in iOS 12.
Tag: Siri
This article, "Apple Exec Overseeing Siri Departs Role" first appeared on MacRumors.com
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from MacRumors: Mac News and Rumors - All Stories http://bit.ly/2S744md
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