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Why Apple continued on cheap TV dongles like Chromecast and Fire TV Stick

Although this is not obvious to any customers, Apple does not expect the stores to overwhelm people. Between the hotel's concierge-like Genius Bars, imported marble floors and unimpeded access to expensive products, they were designed as high-end stores – and managed to generate Tiffany-like revenue. In part, Apple is due to the fact that the years have optimized retail revenue per square meter, giving more space for expensive products and increasing vendor prices, since experience showed that Apple Store customers would pay more.

If the strategy was not obvious before, Apple's final decision to stop revealing the sale of its key products sent a clear sign that it will not be like Walmart or other price-focused dealers flooded with dealers. An easy way to eliminate large crowds is to stop selling affordable devices, and instead focus on products ̵

1; and customers – with higher profit potential.

This background helps explain why Apple zigged with TV streaming hardware when its competitors all fall. Amazon, Google and Roku chased a lot of customers with sub- $ 50 video streaming dongles. At the same time, Apple dropped its third generation Apple TV of $ 99 in favor of more expensive models with app support.

Starting Apple Apple TV is $ 149, while Apple TV 4K starts at $ 179. Instead of discounting these prices with another dollar for Black Friday, Apple today offers a $ 25 gift card with any any model – just enough to get started on another purchase from the Apple Store.

  3. generation Chromecast

above: Google's latest Chromecast contains everything a video streamer needs for $ 25.

By comparison, Google currently offers its newest Chromecast dongle for only $ 25, down from its default $ 35 price. Unlike Apple contains the Google HDMI connector, you must add the power to the television. Similarly, Amazon's basic Fire TV Stick is reduced to $ 25 today, while the Apple TV 4K Rival 4K version goes for $ 35. For these prices, each one includes a full-featured remote control from Alexa, even if you can not even buy an extra ($ 59) Apple TV Siri Remote for the little one.

A report this week from The Information suggests that Apple has been considering offering a downmarket competitor for Amazon and Google products so that it can "get more viewers for its upcoming TV streaming service." Leakages throughout the year have determined that Apple is funding television programs from about a dozen big partners. The report claims that Apple will launch a service around the shows in 2019, and make the content "free of charge on the service".

First-time or even first-week finance students can make the business class cheaper Apple TV hardware. Supply and demand curves suggest that the lower the Apple TV entry price, the more will buy them, which means more potential viewers for the Apple shows. How exactly those viewers will translate into profits for Apple is the Underpants Gnome question you're up to, but one can guess that a combination of advertising, product placement and / or paid subscription revenue is the ultimate goal of the service.

Making a cheap TV dongle would be incredibly easy for Apple. Thanks to its range of self-designed chips, relentless miniaturization and partnership with Taiwanese manufacturers, it can sell a small streaming device without remote control – and possibly without external power. Given the sad current state of the Apple TV App Store, nobody would worry about the dongle just streamed videos and music. Moreover, Apple TV sales have such a slight impact on Apple's bottom line that cannibalization can not possibly be a serious issue.

  Four TV Stick 4K

Above: Amazon's 4K version of its Four TV Stick is available for $ 35, including an Alexa voice remote, when Apple's Siri Remote alone is $ 59.

Image Credit: Amazon

Still, the big unquestionable question is whether Apple really wants to bring budget-conscious customers back into their stores. A downmarket $ 50 Apple TV dongle means more "downmarket" customers replenish Apple Stores with repair, replacement, and return requests, or call AppleCare for boot support. Does Apple really want to postpone premium customers so that it can provide sales and support for $ 50 TV dongles?

In previous years, iPod shuffle, iPhone SE, iPad mini and Mac mini were all used as search devices to expand Apple's markets, but in recent times these "reasonable" models have either been discontinued or brought up to higher price points. This year Apple increased the prices of new Apple watches, iPhones, iPads and MacBooks as well.

A company does not do these features when it tries to attract more customers. Not by chance, Apple's decision to stop reporting sales of the device product was widely interpreted as a trick to get rid of skimming more money from fewer people. That change immediately sucked Wall Street into Apple's warehouse, which meant that the company's market share of over $ 1 billion would fall over 20 percent, despite the assumption that the next quarter would be the best in its history.

Over: Apple's $ 49 iPod shuffle brought millions of new, but budget-conscious customers to Apple Stores.

My personal task is that Apple is at a dangerous junction right now, when it again tries to reconcile its elitist leanings with its mass market potential. The company has built the finest of stores in the highest end areas, and really wants premium customers. Nevertheless, the implicit mission statement has been to simplify and democratize technology for all, not just wealthy customers.

There is the conflict. Apple has created some of the most sought after products in the world for a variety of prizes, and markets itself as a provider of educational solutions for money-hungry students and schools, affordable games for children and adults, and music for everyone. On the other hand, it is appreciated by giant development markets, selling aging or simply old products to prizes over competitors, and releasing new products that are more expensive than their predecessors. Does Apple want to be a fair luxury brand or just a luxury brand?

At one point, Apple would have made enough money to do more should not be a primary or even secondary motivator – as billionaires turning to philanthropy, hitting trillion status would have been the moment for most companies. If Apple has the moment of realization, it should resolve its conflict in favor of public good, rather than pure profit. That means you get the best products in as many hands as possible, even though it means you're going downmarket with the resulting need for creative solutions to reduce retail overpopulation.

The option shrinks the Apple user base at a time when competitors would be excited to pick up disenchanted customers. Losing customers – and thus viewers – is not the kind of strategy that builds a company, says nothing about a television audience. Since its launch, Apple TV has been an expanded "hobby" for the company, but now millions of dollars and a wealth of content partners depend on the platform to succeed. The best way to do that is to reverse the course of the short-term decisions that have turned Apple TV into a niche to this point, and start making choices to expand its user base.

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