Red-hot chipmaker AMD pops on surprise Q2 profit >>> READ MORE

Apple TV Review: AAPL Set-Top Box Is Due for Refresh

Third-generation Apple TV tops in user experience, but price premium getting tough to justify

      View All  

Apple TV Review: AAPL Faces Smaller, Cheaper Competitors Like Chromecast and Roku

apple-tv-review-aaplApple TV typically receives critical praise for its user interface, constantly growing library of services and integration with AAPL devices. Its price tag — now $99 after starting out at $299 — has also been a big part of growing sales.

But the competition is undercutting Apple TV in a big way.

There’s a push to get smaller and cheaper. It started with Google’s Chromecast, a video streamer packed into an HDMI dongle the size of thumb drive which sells for $35. Roku, a long-time maker of set-top boxes followed suit with the $50 Streaming Stick.

Suddenly the praise about user interface and seamless integration found in the typical Apple TV review is being weighed against substantial price differences and a form factor that seems almost antiquated.

Apple TV may offer a more polished user experience (and still retains advantages for iOS device owners), but AAPL is under pressure. Earlier attempts at streaming set-top boxes seemed half-hearted but the Apple TV now seems expensive, over-sized and its lack of support for common video formats like AVI and WMV are tougher to explain away.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC