Is Apple Losing Money On The Apple TV?

It's no secret that Apple makes pretty good margins off of their products. The upcoming iPhone has been rumored to be a 50% gross margin for the company. The Apple TV however, is another story.

According to a study done by iSuppli, the margin for the Apple TV is less than 21 percent before marketing costs are taken into account. It is possible that Apple is selling these at a loss.  They have likely decided to take a hit on these to get their products into your living room in addition to your pocket and in your office.

The newly introduced 160GB model may be a way for Apple to gain back some of their losses. The additional space only costs them roughly $36, while they sell it for an additional $100.

Apple TV selling for razor-thin margins? [via macnn]