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September 14, 2009 5:40 AM PDT

Apple TV gets a price drop

by David Carnoy
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(Credit: Apple)

We're not sure what it will take for Apple TV to really take off, but a $100 price cut certainly can't hurt. On Sunday night, the company dropped the price of the 160GB Apple TV to $229 and killed the 40GB model, which had previously been priced at $229.

Considering Apple had already dropped prices for its Time Capsule wireless networked drives, an Apple TV price drop doesn't come as much of a surprise. On top of that, Microsoft is on the verge of updating the Xbox 360 to stream "instant-on" 1080p movies using Zune video technology, so Apple needs to do something to invigorate its little white video box in the face of increasing competition from plenty of players, including Roku.

Of course, after recently hearing Apple executive Phil Schiller talk about how $199 is a "magic price point" for the iPod Touch, you have to wonder why Apple just didn't hit $199 with Apple TV (I routinely beg Apple reps to drop the price to $199 in meetings).

Alas, in due time. However, before we see that price point, we expect to see a higher capacity, more expensive model in the not so distant future.

Comments? At what price would you consider getting an Apple TV unit? Is 160GB for $229 good enough?

The following product mentioned is available.

On Sale Now: $229.00 - $230.73
View the latest prices for Apple TV (160GB)

Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter.
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by lsc--2008 September 14, 2009 5:58 AM PDT
Even 160GB seems too small to me, given that drives 4 times as large (640GB) are now readily available. I think that 320GB should be the minimum size, with 640GB for the higher end model.
Reply to this comment
by rcrusoe September 14, 2009 7:06 AM PDT
I've had a 160 GB AppleTV for a year or two and feel that the size of the hard drive is not an issue because I only store music on the device and stream my movies & tv shows from iTunes. I use an old G5 PowerMac (with 2TB of storage) as a dedicated media server and find the only time I can see a performance difference between locally stored movies and those that are being streamed is when I fast forward. If I chose to run on ethernet rather than wifi even that difference would probably be negligible.
by george_liquor September 14, 2009 2:42 PM PDT
Wired ethernet is definitely the way to go for video streaming. I stream from a 1 TB NAS device to a computer in my living room. Videos play, fast-forward, rewind, etc just as well as if they were on local disk.
by Rod Roddy September 14, 2009 3:26 PM PDT
Yeah...this thing is dying. When is the last time Apple had an event that focused on Apple TV? Updates?, new features?, a refresh of the device? Their business is built on sales of the iPods and iPhone, with Mac books pulling up the rear. Apple TV was like a pet project. Seriously, who has this thing?
by September 14, 2009 5:16 PM PDT
I am huge Apple nut and have just about everything these guys have ever done - but this thing brings me nothing but frustration. If / when it does work it is very cool and delivers a good experience, but trying to get it to connect/stream/store files is bloody awful. I have a dedicated mac mini media server which I now use Front Row on which is almost as good as the TV and recently found and installed PLEX for movies - which is dynamite.

Perhaps I just need a genius from the store to come show me how to connect it all, but thumbs down on the TV so far...
by itselectric November 10, 2009 3:19 PM PST
http://www.getnetbox.com/ try NetBox it does the same thing as Apple or Boxee but is unrestricted and you can watch everything online on yout TV in HD!!!
by iLikeMyiPhone September 14, 2009 6:09 AM PDT
It is not that they are using SSDs in Apple TV! And we all know how much of a difference in price there is between 160GB, 320GB, 500GB hard drives! Why do they limit Apple TV to 160GB? I might get one for $149 but I am not sure what I can really do with Apple TV! I can do the same with my MBP hooked to my HDTV! Sorry Apple, you lost me on that one!
Reply to this comment
by JShah September 14, 2009 8:15 AM PDT
We find Apple TV is the best way to enjoy our music, videos and photos with friends and family - and I don't even care for watching TV shows or Movies on it.

We use Apple TV to bring all our digital media to our home theater set up in our living room. We enjoy our photos on the 50-in plasma along with music. We have fun watching home videos together on the big screen. We listen to our music in our living room via our home theater system - the best sound we have in the house. We can pick music while laying back on the couch and enjoy it with artwork. When we have parties, we play music with our family photos - it is a huge hit with everyone.

We also use Apple TV to watch trailers of upcoming movies. We use it sometimes to look up videos on youtube - but most youtube videos look terrible on a large screen TV.

Of course, you can do all of this with a MBP hooked up to your system - but why bother with hassle of hooking it up every time you want to see something on the big screen? Why bother with a laptop dangling off your home theater system? Get a dedicated, sleek Apple TV for <$300!

Apple TV is one of the most useful products I've ever purchased. I am amazed why Apple TV does not appeal to more people - everyone seems to have tons of music, photos and videos that can be enjoyed laid back, on a big screen with great sound instead of standing around a small computer screen in a den.
by DrtyDogg September 14, 2009 12:17 PM PDT
JShah: People do enjoy that, just without the added price tag of Apple TV.
by iconoclast04 September 14, 2009 1:08 PM PDT
@ JShah

I do that kind of stuff with my Xbox 360. Unless you're locked into an iTunes world (I guess it's easy in this case), you have other options, such as XB360 or PS3 or Roku, or some other Media Center Extender. I can stream music, video content, and pictures from my PC to my 360 to watch on my tv. I can also stream Neflix movies. Basically, any shared media on your home network is available.
by JShah September 15, 2009 8:33 AM PDT
@iconoclast04

I have a PS3 too - which I love for Blu-ray and gaming. But AppleTV syncs so perfectly with iTunes and iPhoto - playlists, events, albums, ratings and all.
by cohenri7 September 15, 2009 11:18 AM PDT
JSHAH - I have all the music, movies and pictures stored on my PS3 and I also get a Bluray player and all the PS3 games. If you are spending 2+ bills, get a PS3 - don't waste it on this hunk of garbage!!
by ewriter21 September 14, 2009 6:10 AM PDT
Apple TV seems doomed if they can't work out an advertising supported model for TV shows. Why would you pay for an episode of a free network television show on Apple TV when you can watch it free at the scheduled time or use something like HULU to watch it later with just a few ads to put up with?

Movie Rentals are a better reason to use Apple TV but any price for the device represents a barrier vs Netflix.

This isn't the iPod space where the competition was very weak in the beginning and superior design plus a well populated and executed store won. There are several, arguably better, alternatives to what Apple TV provides and Apple needs to re-think this market so they can approach it to win, not approach it thinking it is just like music and the iTunes formula will prevail somehow.
Reply to this comment
by ibeetle September 14, 2009 6:20 AM PDT
You are exactly right. However, I did find a use for my AppleTV... Kids bedroom. Load the hard drive up with their favorite episodes of PBS and Nickelodeon programs and age appropriate movies. Never have to worry about lost, or damaged DVD's again.

Believe it or not while trying to download, and watching network television through iTunes/AppleTV is expensive. An entire season of many children programs are actually cheaper than the DVD's.
by thelemurking September 14, 2009 8:02 AM PDT
I am right there with you. With the majority of new TV's containing a "PC port" on the back, why buy a device when you can simply plug in a laptop and watch free TV shows from Hulu, ABC.com, NBC.com etc... While it might not be a sleek, sexy little white box like the Apple TV, I have no issue with plugging in a VGA cable to my laptop, a stereo 3.5mm to RCA cable into my entertainment center and sit back and enjoy a few episodes of Psych on Hulu, or Lost on ABC.com, or logging into Netflix for some Watch Instantly stuff. So it might not be HDMI and 5.1 surround sound... but I am not going to complain. It works perfectly fine for me and I did not have to buy anything other than what I already owned and I don't have to pay for shows that are already freely available online.
by djames42 September 14, 2009 8:49 AM PDT
"Why would you pay for an episode of a free network television show on Apple TV when you can watch it free at the scheduled time or use something like HULU to watch it later with just a few ads to put up with?"

Because I don't mind paying $25/year for each of the approximately three shows I actually like to watch. It saves me about $1000 over subscribing to Comcast, I watch shows when I want as often as I want, and without any commercials.

I love my AppleTV, and with the price drop, if I had a second TV in the house, I'd outfit it with one too.
by highway61--2008 September 14, 2009 6:12 AM PDT
I agree. I have an Apple TV with a 160gb and would like more storage. But I would also like the ability to subscribe to video podcasts directly from my ATV. Why should have to pile them all on my computer's HD as well as my ATV's HD? It is just ridiculous. Apple needs to finish the job on the ATV, it seems very half way finished to me. Don't get me wrong, I love it and love how it looks on my HDTV but it just seem only half done to me.
Reply to this comment
by ibeetle September 14, 2009 6:13 AM PDT
It is unfortunate that more emphasis on network connection speed is not put on the XBox 360's "instant-on"

From the XBox 360 website (paraphrasing)

Direct connection of 20Mbps or faster.

------

Or faster? 20Mbps is mid-range FiOS speed. Direct Connection? So even if you do have that fast of FiOS speed if your XBox is connected wirelessly you still will not get instant-on.

Instant-on is nothing more than a "we-have-it-others-don't" (but it really does not even work) check box. I doubt more than 2% of XBox owners are really gong to get instant-on.
Reply to this comment
by DrtyDogg September 14, 2009 12:26 PM PDT
@ibeetle: Let me fix that for you:

Users will need a 1080p-compatible HD TV, an HDMI cable and broadband speeds greater than 8 Mbps for instant viewing at 1080p and 5.1 surround sound.

From: http://www.microsoft.com/Presspass/press/2009/jun09/06-01E3PR.mspx

Keep on trolling.
by george_liquor September 14, 2009 3:48 PM PDT
Still, I doubt most consumer broadband connections will manage even 8mbps continuously--I know mine won't. I think a 720p stream would require much less bandwidth and still look indistinguishable from a 1080p stream.
by Matty-K September 18, 2009 5:05 PM PDT
"by DrtyDogg September 14, 2009 12:26 PM PDT
@ibeetle: Let me fix that for you:

Users will need a 1080p-compatible HD TV, an HDMI cable and broadband speeds greater than 8 Mbps for instant viewing at 1080p and 5.1 surround sound. "

Check, check, and check.

Yeah! :o)
by meechp123 September 14, 2009 6:15 AM PDT
AppleTv just needs more...features to be considered.

How about DVR and Netflix streaming? Just being able to view ITunes content on my TV just isn't good enough.
Reply to this comment
by professionaladventurer September 14, 2009 9:26 AM PDT
Agree: Nexflix, Hulu and a firewire port. I traded my Apple TV for a Kayak (no, I am not kidding). I use my 13 Macbook with Hulu desktop, Netflix and Frontrow using DVI-HDMI to 37" LCD and speaker out to my stereo with an additional 750 gig external Drive.
by transporter2000 September 14, 2009 12:33 PM PDT
The biggest feature that would catapult the ATV is an app store. Imagine ABC, CBS, NBC, HGTV, coming out with their own app to stream their tv shows, with their own advertising $$$. HBO with their own subscription fee.

There could be games that you use your itouch or iphone for a controller. their could be apps for streaming music, radio shows, sporting events, news tickers, hulu, netflix, etc. There could be a safari app to surf the internet that you use your itouch or iphone as the keyboard and "Air mouse"

Granted apple might see this as eating into their itunes profits, but if people want to own the series, own the movie, have higher quality, etc; they'll purchase it on itunes. If they're happy with streaming quality, can wait a week later say for their shows, an app would give them another option. This would take TV into the 21st century and give people options, instead the current model moves people who don't know to stay with cable/sat service or those who do know, bit torrent
by wavinwayne September 14, 2009 6:17 AM PDT
I'd be all over the 160GB Apple TV at $229, that is if I HAD an extra $229. Like most Americans these days, luxuries like the Apple TV have taken a back seat to more pressing $$$ issues.
Reply to this comment
by ballssalty September 14, 2009 6:23 AM PDT
I forgot about the Apple TV. 160GB or 40GB? There's their problem. For $279 I could buy a cheap Windows Vista Home Premium machine from Microcenter.com
AMD Athlon LE-1640 Processor
# 3GB DDR2-800 RAM
# 250GB 7,200RPM Hard Drive
# LightScribe SuperMulti DVD Burner
# NVIDIA GeForce 6150 SE
# 10/100 Network
# Microsoft Windows Vista Home Premium

And for $60 I can get BIOSTAR VN9503TH51 HDMI GeForce 9500 GT 512MB 128-bit GDDR3 PCI Express 2.0 x16 Video Card - Retail.

So for $340 (only $10 more than the old AppleTV cost) I could have a machine that runs rings around the Apple TV. Granted it's a mid-tower case but you could lay it on it's side or put in a hidden space out of sight and run the cables.

Now that they've dropped the price I still don't see it selling. Most of the target market for devices like this have either already built or bought Windows Media Center PC's or built MythTV boxes or are using their Xbox 360's like me. My Xbox 360 is linked to 2TB's of storage space for music and videos.

Now why would I want an Apple TV and it's tiny 160GB?
Reply to this comment
by ZetaZeta_ September 14, 2009 6:36 AM PDT
What ^he said. Personally, I prefer the WMC GUI, but if that was not a factor, a Windows based media center really does it for me. It's just so much more bang, since I can throw in a few TBs of HDD space as well.

If XBMC for linux had DVR capability, that would be an even better option since all the money spent on the Windows OS would go into HDD.
by ZetaZeta_ September 14, 2009 6:41 AM PDT
According to another article, the specs for Apple TV -

"It is powered by an officially unspecified "Intel processor" -- a 1 GHz "Dothan" Pentium M -- and equipped with 256 MB of onboard DDR2 SDRAM and a 40 GB or 160 GB hard drive "for storing content locally" (160 GB hard drive option available starting May 30, 2007, 40 GB option discontinued September 14, 2009)."

If I was running, say, a Linux media center, like XBMC, I could have similar usability on those low hardware specs. However, I find it amazing that 1 GHz x86 processor, 256 MB RAM, and 160 GB of HDD is generally the specs of my PC back in 2000. It's perfectly fine for Apple to take these and make a good product out of them, but I wonder how cheap I can actually go in the PC world in order to get similar usability.
by rcrusoe September 14, 2009 8:13 AM PDT
Very few people want a pc in their living room. And of the tiny percentage of geeks that would (and I use geeks as a positive term) almost none would be able to get permission from the lady of the house to do it.

Despite it's limitations, the Apple TV's form factor is definitely one of it's major selling features.
by DrtyDogg September 14, 2009 12:28 PM PDT
@rcrusoe: If you build it right it is easy to get the appropriate permission.
by viper396 September 15, 2009 4:29 PM PDT
@rcrusoe, the idea is to not make it so obvious that it's a PC. My MCPC looks like a piece of stereo equipment and the lady in my house prefers it over the Comcast box that now sits idle most of the time. (Having almost every CD, DVD, and Bluray movie we have ripped, stored, and accessible thru it is a convience we won't give up now)
by Demerit September 14, 2009 6:28 AM PDT
You know, if it just allowed me to surf the internet in my living room (since I don't have a laptop), I'd buy one.

Would it be all that hard to include a web browser and a wireless keyboard/trackpad?
Reply to this comment
by Demerit September 14, 2009 6:28 AM PDT
You know, if it just allowed me to surf the internet in my living room (since I don't have a laptop), I'd buy one.

Would it be all that hard to include a web browser and a wireless keyboard/trackpad?
Reply to this comment
by GregMG999 September 14, 2009 6:34 AM PDT
All the comments above are right on the spot -- while Apple can and should include proprietary programming (iTunes, etc.), they need to make the Apple TV the home entertainment center in a box -- a hub that also allows access to many other services like NetFlix, DVR capability (although the video-on-demand model of 'renting' a movie for 24 hours can negate the DVR necessity). There needs to be the "total entertainment experience" to move people to buy the box as opposed to their current set ups (which many might feel are 'just fine'). It has to be too tasty to resist.

A larger drive is a necessity if people want to store photos and music on the device. 1TB drives are not going for much money these days, and it would be useful to have SD/Flash card slots right in the device.

But two other factors also need to be considered: marketing and design. Apple TVs marketing is just not omnipresent -- I do not know how many casual users (most of the population) are even aware of Apple TV enough to consider it in their entertainment set-up. The advertising should also be less passive and smug (like it is currently, expecting people just to jump because it is an Apple product). From the design perspective, the box is too plain, and does not fit a common user expectation of a home entertainment unit. It is an odd size, and is perhaps too minimal. It fits well with other Apple drives, but not necessarily with other living room entertainment products. I think a vertical positioning option would help (like a book on a bookshelf), perhaps with a small OLED screen that allows the user to view the menus, date, time, etc. without having to view the television, and add a bit of visual wow to the box.

(I say the above as an Apple fanatic, and a designer)...
Reply to this comment
by thelemurking September 14, 2009 8:07 AM PDT
Why would a I rent a movie or do on-demand when I can record much of that content for free on my DVR with channels I already subscribe to? If it's a new movie that I think I would really enjoy, then I will buy it on DVD or BluRay... if it's something that is not worth buying, but I still want to see, that's why I have NetFlix.

I would not undervalue the importance of DVR in a media box.
by er3s September 14, 2009 6:35 AM PDT
I believe one of the biggest acceptance hurdles to the Apple TV is the perceived iTunes tine-in. Most of us can get things that play video for much less money. Perhaps not from iTunes or even network enabled, but there are devices much less expensive that play more media and support more formats. It seems that Apple TV is another one of those device where you can only play things you can buy in iTunes. Perhaps I'm wrong, and if so I take it back, but that is my perception.
Reply to this comment
by transporter2000 September 14, 2009 12:53 PM PDT
you can play your ripped mp3's from itunes, ripped DVD from handbrake from itunes. With Vuze, you can bit torrent shows, convert them to itunes format and watch them.

Apple TV just uses itunes as the link.
by tappy727 September 14, 2009 1:02 PM PDT
I have an AppleTV and I have never bought anything from iTunes (I have a problem of being authorized to play my media). I rip some on my DVD's so my kid has access to a few titles. Picture quality is noticibly worst than DVD. AppleTV HD content is only up to 5 Mbps 720p so it won't be nearly as good as Blu-ray (48 Mbps) so why would I even bother with that? It is an ok toy for my kid though.
by cb199 September 14, 2009 6:37 AM PDT
I think the apple TV is brilliant. However I see no reason for the hard drive at all. I stream almost 2TB worth of movies, tvshows, music, and pictures to it and it has been flawless. I bought the apple when it first came out and have never looked back. Of course it would be awesome to integrate some Hulu or Netflicks to the box. But I'm sure its coming, apple hasn't disappointed yet.
Reply to this comment
by xcal78 September 14, 2009 6:45 AM PDT
"...apple hasn't disappointed yet"

The lack of features, small size, and price tag are all very dissapointing!
by RFPMN September 14, 2009 7:47 AM PDT
I agree. I hacked my Apple TV with ATV Flash. I'm able to get Hulu and other online content. I also have PlayOn which lets me use XBMC and I can stream Netflix to Apple TV. While this all works pretty well, it did cost me $49 for ATV flash and $39 for PlayOn, I would like it added to the product.
by Arrow_Raider September 14, 2009 6:41 AM PDT
I bought a 160 gb model for $330 one week ago. I am furious.
Reply to this comment
by La_Mont September 14, 2009 6:50 AM PDT
Take it back to the store and threaten to return it if you are not refunded the price difference. Be nice and all should be painless.
by mes5 September 14, 2009 7:32 AM PDT
check your receipt, you have 14 days to get a refund on the price drop
by macko_d September 14, 2009 6:41 AM PDT
I think its high time that apple combine both the apple tv and the mac mini into one cohesive unit. All the inputs for great digital tv viewing and an entry level computer to browse check email and video conference all from the comfort of the couch!
Reply to this comment
by thelemurking September 14, 2009 8:12 AM PDT
I completely agree... I would definitely consider getting one if that were the case. Apple TV as is, seems way to limited.
by HalJayGreene September 14, 2009 6:44 AM PDT
Price schmice. I WANT MY ON-DEMAND TV!! Failing that, at least killer DVR! This is SO WITHIN Apple's grasp it's almost criminal that Apple does NOT come out with a Hulu-playing Netflix (or streaming iTunes) TIVO-ROKU -KILLER box (or modded mini) now. NOW NOW NOW! Do you hear me?? I'm holding my breath Steve! I'm turning blue! Gimme gimme gimme!
Reply to this comment
by dk jones September 14, 2009 6:51 AM PDT
maybe someday the Apple TV will be more than it is but, any Mac user would do better to buy a Mac Mini, even an older Core Duo model w/ 64 MB RAM for the Video, especially since it's so small, fits easily into a home theatre set-up.
Reply to this comment
by OS11 September 17, 2009 8:11 AM PDT
no, the Mac mini just isn't designed for a Television. It's too cumbersome to manage, while the AppleTV is a dream machine if you want to watch tons of free content via a smooth interface, the mini simply can't do it. The ATV is probably Apple's best value in their entire product line. And no people, the HD size matters very little, anyone who says that has never used a ATV.
by chapindad September 14, 2009 7:01 AM PDT
This is what needs to happen for me to finally purchase a Apple TV.

They need to increase the HD to 320 and have the option for me to add USB drives to the device. This would allow me to add unlimited storage on the device and be able to move catalogs of movies around.

They need to add a DVD drive and allow me to rip movies to the USB drive. Add all the DRM they want, so that only my account can use the movie, but I have over 200 DVDs that I would love to be able to RIP and then store away.

And the most important thing, is that they need to develop a subscription model for movies and TV shows. Let me pay $50-$60 a month and have access to all the movies and TV shows in the iTunes library, plus add sports programming to the mix. Basically allow me to fire my current Dish or Cable provider and allow me to watch what I want to watch, when I want to watch, and where I want to watch it..
Reply to this comment
by BtmnHatesRbn September 14, 2009 7:15 AM PDT
Apple TV was a great idea, when I was buying or download free shows and movies left and right for use. Then along came ISP download limits. Since I've already watched what I already owned a few times (which is enough), the unit just sits there.

When articles like these, which deal with a device that has to have content downloaded for it, and yet refuses to address the issue of ISP download limits, then one has to wonder why its not being reported?
Reply to this comment
by Cheese McBeese September 14, 2009 8:08 AM PDT
No download limits for me! :P
by OS11 September 17, 2009 8:12 AM PDT
why woud you have bandwidth limits? sounds like you need another ISP.
by cftilley_dotmac September 14, 2009 7:23 AM PDT
I'd have one if an Apple TV came free with every box of corn flakes.

To my mind, it's an underpowered device that can't do what's needed to be the entertainment hub for the home. Until it, or something else, does, I'm happy to leave it lonely on the shelf.
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