According to an article published on Apple Insider, citing data from research firm Parks Associates, Apple saw its share in the streaming media device market drop from 26% to just 17% in 2014. Although the report cites lower-cost "stick" alternatives from Roku, Amazon, and Google as reasons why Apple has lost share, I suspect that selling a much less functional device at a $99 price point was also a problem.

The price drop on the current models from $99 to $69 should help on the share side, but revenue and profits per unit obviously take a hit. By introducing a much more capable device with more features, faster processing, and potentially a more compact design, Apple should be able to charge higher prices and command better margins per unit.

From the article "Apple TV Is Finally Getting a Makeover" by Ashraf Eassa.

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