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. In a new report today, Kuo says that Apple will launch a cheaper Apple TV model in the second half of this year. The focus of this new model will be on improving the “cost structure” of the Apple TV.

Cheaper 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 explains that a new Apple TV will come during the second half of the year “that improves cost structure.” Kuo says:

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. Ideally, it will be far more comparable in price to products from competitors like Roku and 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. The Apple TV is far more expensive than competing products in the streaming accessory industry, although it is more powerful.

Apple has long said that the more powerful chip inside the Apple TV helps it serve as a gaming console of sorts, particularly with the launch of Apple Arcade. Despite Apple’s best efforts, however, the Apple TV hasn’t really caught on as a gaming device.

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 hope to see from a more affordable version of the Apple TV? How much would you be willing to pay? Let us know down in the comments.