A cheaper Apple TV could arrive in time for the holidays

The current Apple TV 4K has only been on shelves for about a year, but a new report says that Apple could be planning to launch a new model before the end of the year.

A tweet from Ming-Chi Kuo’s unverified account on Friday brings long-awaited news about Apple TV hardware. According to Kuo, Apple plans to launch a new version of Apple TV that “improves the cost structure” in the second half of this year. We’re interpreting that as a cheaper Apple TV device.

Apple doesn’t have a device-like product that can compete with streaming sticks in the $50 range, like Roku’s 4K Streaming Stick, Google’s Chormcast, or Amazon’s Fire TV Stick. Apple’s only two streaming devices are full-size boxes, the $149 Apple TV HD and the $179 Apple TV 4K. Kuo seems to hint that Apple will eventually compete in that space. The lack of a cheaper device is a glaring hole in Apple’s product lineup and is likely hampering Apple’s growth in the market.

The current Apple TV 4K was last updated in March 2021 with a new processor, better video encoding (4K at 60fps), and an improved remote control. However, its design hasn’t changed for many years and it’s much more expensive than its competitors and lacks features like permanent Siri support and 120Hz resolution.

As for the Apple TV+ streaming service, Apple has been rolling out shows like ted lasso Y Breaking off that have caught on with audiences, but the service still lags behind in terms of number of subscribers. Apple doesn’t release membership data regarding Apple TV+ or sales data for Apple TV hardware, but Statisa estimates there are 25 million Apple TV+ subscribers. Netflix has more than 221 million subscribers worldwide, according to Statisa, so Apple has a lot of potential customers it needs to figure out how to reach. And cheaper Apple TV hardware would help.