The Current Apple TV Doesn't Make Sense

Six Colors:

In the end, I’m left with the same feeling I had yesterday: Even after Apple has removed the two biggest reasons to buy an Apple TV (exclusive access to AirPlay and Apple’s video content), there is a whole collection of small reasons to buy an Apple TV. But of course, they all require that users pay a large premium—not the usual step-up for Apple products over the competition, but a fivefold increase in price. (Imagine if AirPods Max cost $1800.)

Some people will pay that premium. A lot of people won’t—and aren’t.

First off, Apple deserves some credit for cannibalising its own product so freely. Part of the reason the Apple TV feels a bit irrelevant at the moment is because Apple has chosen to convert some of its proprietary features into commodities. Whilst they had to relinquish control to some degree to broaden the availability of its TV+ original content, it didn’t have to offer ways for long-time iTunes Store customers to access their library of purchases from non-Apple devices .. but it did. A company that can cannibalise itself without fear is not a common thing.

All that being said, the current Apple TV hardware proposition is not good. It’s simply too expensive. A box that offers music, movies, photos, workouts and games through an Apple-designed interface is a desirable product, but it’s not worth $179. It’s not worth $149 even; the price that Apple still charges for the 1080p Apple TV.

That doesn’t mean Apple should get out the set-top box business. They totally should make one. Just like Apple thought it was worthwhile to make an entry-level smart speaker, there’s space in the market for an Apple streaming device. It supports all of Apple’s content services, from fitness workouts to photos, videos and games. Plus, it helps Apple participate in the connected living room, something that will become even more significant as the company prepares a renewed push for HomeKit and the wider Apple smart home ecosystem.

I’m not saying Apple has to stoop to the levels of $40 bargain bucket streaming sticks like those from Amazon and Roku. They are perfectly respectable products for what they are but that low-end isn’t worth Apple’s while.

What I want, what everyone wants, is a modern Apple TV with an updated processor. We will pay for the niceness. At $99, we’re sold. Like all of Apple’s products, the Apple TV should aim to fill the segment of the market that toes the line between being accessible to the masses and being aspirational luxury.