Apple TV Is Getting Closer To Becoming Living Room Winner, Gurman Says: How Does It Compare To Amazon, Google?

Apple, Inc. (NASDAQ: AAPL) unveiled new hardware products, including the next-gen Apple TV, last week.

What’s New With New Apple TV: The biggest changes in the next iteration of Apple TV are the price drop and the segmentation of the new model into two variations, Bloomberg columnist Mark Gurman said in his weekly “Power-On” newsletter.

He noted the basic Apple TV now costs $129 and has 64 gigabytes of storage but lacks an Ethernet port and support for Thread IoT devices.

For about 99% of Apple TV buyers, the $129 model is the move, while the $149 model is for those wanting Thread support and 128 gigabytes of space, he added.

See also: Apple Supplier Says Smartphone Market Slump May Last Well Into 2023, In Stark Warning Ahead Of Holiday Season

Why It’s Important: Price is what stopped the Apple TV from becoming a winner in the living room, Gurman said, adding “but now we’re getting closer to the right formula.”

Apple is now undercutting Amazon, Inc’s (NASDAQ: AMZN) high-end Fire TV Cube priced at $139, he said. Still, Amazon and Alphabet, Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) sell 4K Fire TVs and Chromecasts for under $50, he added.

“If Apple gets back to $99 (the price of the first streaming Apple TV in 2010), the company will be in good shape,” Gurman said.

“And it doesn’t matter if that’s via a cheaper box or a stick for a TV’s HDMI port.”

The Apple specialist said he thinks the new Apple TV is a fantastic upgrade, given the new pricing, support for HDR 10+, an A15 chip, double the storage, more memory and a smaller design with no fan. This should keep customers happy until bigger changes are ready, he added.

Apple ended Friday’s session at $147.27, up 2.71%, according to Benzinga Pro data.

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Photo courtesy of Apple.