The idea of Apple launching a competitor to Amazon’s Fire TV has always been foreign because such devices are mass produced with cheaper materials, allowing companies to reduce the retail price and target a bigger audience. Unfortunately, the lack of processing power due to space constraints is likely another reason why the Cupertino giant’s marketing executives abhor the product, but a report claims that the current pricing of the Apple TV 4K means that releasing a stick-like device is the only possible route to expand its hold in the market.
At $129, the base Apple TV 4K is nearly four times more expensive than Amazon’s Fire TV Stick 4K Max, leaving revenue in the millions off the table
A stick-like TV device was previously reported to have been disregarded by Apple executives, believing that it was not premium enough. In the latest ‘Power On’ newsletter from Bloomberg’s Mark Gurman, he states that the best scenario for the California-based titan would be to release stick-like hardware, which would complement the bigger and more powerful TV boxes. While Gurman mentions that it is an idea frowned upon by the company’s more established personnel, it is a move that will help Apple capture the market at a lightning pace.
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Currently, Amazon’s Fire TV Stick 4K Max retails for $32.99 after a hefty 45 percent discount, with its original price being $59.99. Even if Apple does not offer such attractive price cuts, the seamless integration between its devices and tvOS running on the stick would be sufficient to garner a copious number of sales. If we perform a comparison, the base Apple TV 4K with no Ethernet and 64GB of internal storage retails for $129, making it nearly four times as expensive as the Fire TV Stick 4K Max.
For some customers, spending triple figures on TV hardware might not be a value proposition,
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Mark Gurman