Kuo: Cheaper Apple TV coming later this year to ‘close the gap with competitors’

Reliable Apple analyst Ming-Chi Kuo has a bold prediction for the future of the Apple TV. Kuo claims that Apple will release a lower-priced Apple TV in the second half this year, according to a report. The focus of this new model will be on improving the “cost structure” of the Apple TV.

Has Cheap Apple TV On the Way

As it stands today, the Apple TV 4K starts at $179 for 32GB of storage with a 64GB model is also available for $199. Apple also still sells the previous-generation Apple TV HD for a whopping $149 with 32GB of storage.

Kuo explained that an Apple TV with a higher cost structure will be available in the second half.

Apple will launch a new version of Apple TV that improves cost structure in 2H22. I think that Apple’s aggressive strategy of integrating hardware, content, and service amid the recession will help close the gap with its competitors.

Kuo’s post is relatively vague, so we don’t know much more about what we can expect from a more affordable version of the Apple TV. It should be much more affordable than products like Roku or Amazon.

9to5Mac’s Take

Apple last updated the Apple TV 4K in April of 2021, keeping the price the same but adding a new Siri Remote and an upgraded A12 Bionic. Although it’s more powerful than other streaming accessories, the Apple TV is still more costly than comparable products.

Apple has always claimed that the Apple TV’s more powerful chips make it a better gaming device, especially with Apple Arcade. The Apple TV is not a popular gaming device despite Apple’s best efforts.

One possibility is that Apple launches a cheaper variant of the Apple TV that exists alongside the Apple TV 4K. As Apple pushes to get Apple TV+ into as many homes as possible, a cheaper version of the Apple TV focused purely on streaming services represents an important part of the strategy.

On the flip side of the pricing structure, Bloomberg has also reported that Apple is developing a version of the Apple TV with an integrated HomePod speaker and camera for FaceTime. This would certainly be more expensive than even the current Apple TV 4K.

What do you expect to get from an Apple TV that is more economical? How much would you be willing to pay? Let us know down in the comments.