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Why Apple TV Must Evolve to Avoid Extinction

Without making an announcement, Apple slashed the price of its larger-capacity Apple TV set-top box on Monday and discontinued a lesser model. Even with the price cut, the product is unlikely to survive if it does not adapt to consumer demands in the entertainment market, analysts agree.

The price reduction brings the 160-GB Apple TV from $330 down to $230 - the price of the previous 40-GB model, which is no longer for sale.

"In its current form, the Apple TV is not a product that has very much life in it," said James McQuivey, a Forrester analyst. "I think that's reinforced now that they've cut one of the [models] and they've reduced the price."

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