Having taken it apart, iSuppli estimates that the components and materials used to make Apple TV cost $237. Since Apple sells it for $299, that would leave a gross profit of $62, or about 20 percent, before marketing costs. "That would be a big change from Apple's penchant for gross margins in excess of 50 percent outside its computer lineup," says BusinessWeek. "That's been the usual case with the iPod music player family and appears to be the case with the iPhone."

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