Why Apple shouldn't make a streaming device for cheapskates | Digital Trends

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Why Apple shouldn't make a streaming device for cheapskates | Digital Trends
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Apple already has low-cost hardware. It's called Roku and FireTV and Chromecast.

The Internet — that is folks who likely spend too much time on it — loves nothing more than to speculate about what Apple may do. Or even better, what Apple should do. The more foolish among us are sold bold as to say what Apple will do.

The truth is that Apple doesn’t need a less-expensive piece of hardware connected to a TV. Not to make money, anyway. Such devices almost certainly aren’t generating any sort of profit, at least not by selling the hardware itself. Google has the $50 Chromecast with Google TV. Amazon Fire TV Stick 4K is the same price. Neither company gives us much insight into how many they’re selling, or what the profit margin might be.

It helps a little if you think of hardware in terms of the greater platform. Google makes hardware not for hardware’s sake, but so that it can expand its search ecosystem that much more. The same goes for Amazon, though in that case, it’s e-commerce leading the way, with a secondary dose of search for good measure. Roku always has been a little different. Its simplistic operating system has been platform-agnostic, meaning that it was made to run all the apps from all the services.

In other words, Apple already has low-cost — revenue-negative, really — hardware. It’s just that someone else is making it, and someone else is likely taking the loss on the balance sheets. And that someone is Roku and Amazon and Google and everyone else that allows the Apple TV app on its platform.

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