Apple TV: Right Tech, Right Price

The other day, the FedEx man delivered a tiny box containing my new Apple TV.  Although I'd seen the pictures and press conference, I was taken aback by how small the device actually is.  I've heard it described as a hockey puck.  Now that I've seen it, I can't think of a better analogy.  Along with the "hockey puck", the only things in the diminutive box are a power cord and an Apple remote.  Noticeably absent are any cables for hooking the device up.  More on that later.

The back of the Apple TV reveals five connection ports, one each for power, HDMI, optical audio, Ethernet and a micro USB.  Their uses are obvious except for the USB.  The instructions say it's for service and maintenance and that's all Apple will say about it for now.  The front of the device is completely devoid of any controls or buttons of any kind.  The only thing visible is the tiny LED that lights up white when the unit is turned on.  The infrared pickup for the remote is also on the front, but is completely invisible even when using a flashlight to try and spot it.

Hooking up the Apple TV couldn't be easier.  As with all things Apple, simplicity was the obvious goal of its designers.  Mission accomplished.  For most people, all that's necessary is connecting an HDMI cable to an HDTV (720p is the minimum requirement) and plugging in the power cable.  Speaking of power, a terrific feature of the Apple TV is its internal power supply.  The device uses so little power there's no need for an external adapter.  You know, the cube-shaped "wall wart" that covers up the second plug on your wall socket.

My connection was a little more involved.  Although the Apple TV is equipped with wireless networking, I used the Ethernet port because I'm a geek and my home is wired.  Also, I connected the HDMI cable to my A/V receiver instead of directly to my TV.  I didn't need it, but if you own a sound system without HDMI, the optical port will stream digital audio to your system.

Once everything was connected, setup was a snap.  Basically, all you do is enter your iTunes login information and voila!  Apple's "Home Sharing" keys everything off that single login so every computer on my home network (with Home Sharing turned on) was visible in the menu and all their content was instantly available.  The user interface is intuitive and quite pretty, reminding me of the "Front Row" Mac application.  Album and movie art displays the same with blue highlights and reflections as it smoothly rotates in three dimensions.  First, I tried streaming an HD movie from my laptop and it worked flawlessly.  All my music playlists were there so I tried playing a couple.  Again, flawless.  Renting content from the iTunes store works just like it always has. Netflix is built in and streaming movies and TV shows from both services work perfectly also.  In every case with every source, HD and standard definition video starts almost instantly and streams smoothly.  This is dependent on a fairly good broadband connection.  If yours isn't so snappy, you may have to wait a minute or so while the Apple TV buffers enough to display your video without interruption.

A good user experience that prompts lots of rentals is obviously what Apple is banking on.  At $99, the device itself certainly won't produce windfall profits.  It's early, but give it a few days and someone will tear this thing apart and have Apple's wholesale cost to manufacture it estimated to the dollar.  I'm guessing it's over 80 bucks.  It's the old Gillette business model.  Give away the razor so you can sell the blades.

After some initial tear downs, we're learning that the Apple TV shares many of its innards with the iPad.  It uses the same A4 processor, Samsung flash memory (8 gigs) and some clever developers tell us it's running a modified version of iOS 4.

That last part is what really makes this device intriguing.  If it does have the same capabilities as an iPad, then apps for the Apple TV can't be too far away.  Right now, aside from iTunes, there are apps for YouTube, MobileMe, Flickr and Netflix.  Can you imagine how cool this device would be if all the iPhone apps were available?  Hulu, Google Earth and Safari instantly come to mind as being very nice to have and what about the thousands of games in the App Store?  You can already use your iPad, iPhone or iPod Touch to control the Apple TV, but they would make terrific game controllers too.  Apple didn't immediately allow apps on the iPhone.  Maybe they're following the same game plan for the Apple TV.  I hope so.  Google is planning a launch for their own TV product and they've said the Android Marketplace will be included right off the bat.

I have to say I've really enjoyed my Apple TV.  Home sharing works perfectly and the Netflix, Flickr and YouTube apps are so easy a grown-up can use them.  At $99, Apple has an opportunity to get these in a lot of homes this Christmas.  It will be interesting to see how Google counters.

The other day, the FedEx man delivered a tiny box containing my new Apple TV.  Although I'd seen the pictures and press conference, I was taken aback by how small the device actually is.  I've heard it described as a hockey puck.  Now that I've seen it, I can't think of a better analogy.  Along with the "hockey puck", the only things in the diminutive box are a power cord and an Apple remote.  Noticeably absent are any cables for hooking the device up.  More on that later.The back of the Apple TV reveals five connection ports, one each for power, HDMI, optical audio, Ethernet and a micro USB.  Their uses are obvious except for the USB.  The instructions say it's for service and maintenance and that's all Apple will say about it for now.  The front of the device is completely devoid of any controls or buttons of any kind.  The only thing visible is the tiny LED that lights up white when the unit is turned on.  The infrared pickup for the remote is also on the front, but is completely invisible even when using a flashlight to try and spot it.Hooking up the Apple TV couldn't be easier.  As with all things Apple, simplicity was the obvious goal of its designers.  Mission accomplished.  For most people, all that's necessary is connecting an HDMI cable to an HDTV (720p is the minimum requirement) and plugging in the power cable.  Speaking of power, a terrific feature of the Apple TV is its internal power supply.  The device uses so little power there's no need for an external adapter.  You know, the cube-shaped "wall wart" that covers up the second plug on your wall socket.My connection was a little more involved.  Although the Apple TV is equipped with wireless networking, I used the Ethernet port because I'm a geek and my home is wired.  Also, I connected the HDMI cable to my A/V receiver instead of directly to my TV.  I didn't need it, but if you own a sound system without HDMI, the optical port will stream digital audio to your system.Once everything was connected, setup was a snap.  Basically, all you do is enter your iTunes login information and voila!  Apple's "Home Sharing" keys everything off that single login so every computer on my home network (with Home Sharing turned on) was visible in the menu and all their content was instantly available.  The user interface is intuitive and quite pretty, reminding me of the "Front Row" Mac application.  Album and movie art displays the same with blue highlights and reflections as it smoothly rotates in three dimensions.  First, I tried streaming an HD movie from my laptop and it worked flawlessly.  All my music playlists were there so I tried playing a couple.  Again, flawless.  Renting content from the iTunes store works just like it always has. Netflix is built in and streaming movies and TV shows from both services work perfectly also.  In every case with every source, HD and standard definition video starts almost instantly and streams smoothly.  This is dependent on a fairly good broadband connection.  If yours isn't so snappy, you may have to wait a minute or so while the Apple TV buffers enough to display your video without interruption.A good user experience that prompts lots of rentals is obviously what Apple is banking on.  At $99, the device itself certainly won't produce windfall profits.  It's early, but give it a few days and someone will tear this thing apart and have Apple's wholesale cost to manufacture it estimated to the dollar.  I'm guessing it's over 80 bucks.  It's the old Gillette business model.  Give away the razor so you can sell the blades.After some initial tear downs, we're learning that the Apple TV shares many of its innards with the iPad.  It uses the same A4 processor, Samsung flash memory (8 gigs) and some clever developers tell us it's running a modified version of iOS 4.That last part is what really makes this device intriguing.  If it does have the same capabilities as an iPad, then apps for the Apple TV can't be too far away.  Right now, aside from iTunes, there are apps for YouTube, MobileMe, Flickr and Netflix.  Can you imagine how cool this device would be if all the iPhone apps were available?  Hulu, Google Earth and Safari instantly come to mind as being very nice to have and what about the thousands of games in the App Store?  You can already use your iPad, iPhone or iPod Touch to control the Apple TV, but they would make terrific game controllers too.  Apple didn't immediately allow apps on the iPhone.  Maybe they're following the same game plan for the Apple TV.  I hope so.  Google is planning a launch for their own TV product and they've said the Android Marketplace will be included right off the bat.I have to say I've really enjoyed my Apple TV.  Home sharing works perfectly and the Netflix, Flickr and YouTube apps are so easy a grown-up can use them.  At $99, Apple has an opportunity to get these in a lot of homes this Christmas.  It will be interesting to see how Google counters.