The latest comes from a competitor to Apple’s little media streaming hobby, Apple TV. Competitor? There’s a competitor to Apple TV? Well, yes. There’s Google Chromecast, and Roku and… well, that’s about it. To hear Apple’s Apple TV competitors tell it, Apple is the one doing all the suffering.
Losing Money Apple’s Way
In the common ‘Apple is doomed’ theme, everything Apple does will inevitably lead to the company’s demise. How so? Convoluted logic.
The latest barrage of Looney Tunes Logic™ came from Roku’s CEO Anthony Wood who called Apple’s Apple TV hobby a ‘money loser.’
That’s right. Apple has a product that loses money. Well, actually a whole string of products that don’t really make the company any money.
Let me go down the list first, then get back to Roku and Apple TV.
See, Apple doesn’t make any money by giving away a bunch of apps for free. Pages, Numbers, Keynote, Mail, Calendar, Contacts, iMovie, iPhoto, Safari, Contacts, iTunes.
Yep. That’s right. Giving apps away for free doesn’t make Apple any money. Unless you stop to realize what’s really going on.
All those free apps make up a platform, and the platform is accessed by giving money to Apple to buy a Mac, iPhone, or iPad, all which are insanely profitable, so, yes, Apple loses money on apps, but makes it up on hardware.
Apple is a hardware company. There. I said it.
Going Broke Streaming Stuff
What did competitor Roku’s CEO mean when he said Apple TV loses money? Yes, that came from the guy whose company doesn’t make as much money on his product as Apple makes on Apple TV.
Apple TV is essentially an accessory for the iPad. They lose money, which is unusual for Apple. If you’re losing money, why would you want to sell more?
Actually, Anthony Wood does not really, truly, deeply know whether or not Apple makes any money on Apple TV, whether it’s from hardware or software, but Apple made $1-billion from Apple TV last year and Roku didn’t make that much.
Roku is so desperate for attention that they’ve added an Aereo app and pornography to the content offerings.
Lets do the math that Roku has trouble figuring out. Google’s Chromecast USB stick sells for about $30. Roku’s similar stick starts at about $50, and devices go up to $100, about $1 more than Apple’s TV.
Yet, Apple sells more Apple TVs than Roku or Google sells of their sticks and boxes, so who is really, truly, deeply losing money?
Plus, Apple TV is a conduit to iTunes Store where you can buy or rent TV shows, movies, and music, so the $1-billion in revenue that Apple counted last year as coming from Apple TV sure seems like a lot more than what Roku makes. Actually, Roku’s biggest revenue source seems to come from investor who stuff money into the company in the hopes of a big payoff one day.
You know, like when Google or Apple buys Roku.
Fear and loathing of Apple has reached epidemic proportions.