“Apple knowingly gave up as many as 1.5 million iPhone sales during the holiday quarter to establish the future of the iPod as a mobile device, according to investment note issued on Monday by Needham & Co.,” Aidan Malley reports for AppleInsider.
“Analyst Charlie Wolf bases his observations around statements made by Apple chief operating officer Tim Cook during the iPod maker’s latest quarterly results conference call; the executive referred to the iPod touch as becoming a ‘mainstream Wi-Fi mobile platform’ rather than just a touchscreen version of the iPod. The company’s willingness to reduce the feature and price gaps between the iPhone and iPod touch indicates that it’s ready to trade short-term losses for long-term growth of the iPod as a general device, especially among existing iPod owners trading up from older players,” Malley reports.
“The increased support for the iPod touch may also be a calculated risk that future iPhone updates will negate any immediate hits to the current product’s success. Needham predicts that Apple will release an upgraded, 3G-capable iPhone at the same price in the summer and will drop the price of the current model to $299 at the same time, also dumping current iPod touch prices to $199 and $299,” Malley reports.
Full article here.
During the company’s conference call, Apple executives, stated at least three separate times that, to paraphrase, “Apple established iPod touch which has the potential to become the very first mainstream mobile platform running all kinds of applications.”
Great strategic move… iPod needs to go beyond MP3 Player. Now it’s all about wireless platform.
That said, are you frustrated with the lack of features of MacBook Air? Then please discover the MacBook AirCraft. Nothing is missing, except maybe a mouse !!!
http://www.flickr.com/photo_zoom.gne?id=2221194388&size=o
My iPhone is a great phone, but had they had the iPod Touch available last June when they intro’d the iPhone, I would have probably opted for the iPod Touch. It’s going to be a killer device.
@ Spark,
Why just a Touch over the iPhone? Because you don’t enjoy AT&T;?
To suggest that a consumer decision was between an iPhone, which entails a subscription and solves a completely different need, with an iPod touch is complete, utter bullshit.
These guys do not know what the fsck they are talking about.
There are a lot of people that I talk to that want an iPhone but don’t want to give their business to AT&T;(yest they hate them that much!). The iPod touch is no doubt the future of a lot of great things. Who knows maybe Apple will start streaming a weekly show to iPod touch that features new artist samples?
I own an iPod Touch and an iPhone. I don’t want to be out of battery when that one crucial call comes in.
@Spark
Exactly. Apple didn’t trade a flippin’ thing, ‘cos like millions of others, I don’t need a new phone.
My company pays my phone bill (just as long as it’s from an “other, but unnamed” company), so I wouldn’t have bought an iPhone anyway.
The Touch is showing the direction Apple is taking. They are smart as hell, doing things slowly but meaningfully:
1) First they’ve launched the Touch and made sure people will get on board. It’s somekind of proof of concept.
2) Make it a platform with a couple of application added on it. + many more to come with the SDK. People are still there.
3) Then in the future, launch a similar but a bit larger device, + a couple of productivity application and finally, you have the Mac Touch Tablet to come.
Conclusion:
The Mac Touch or iTablet is the surprise of 2008. Released after the SDK.
It will be an extended Touch. Not like any other tablet be totally rethought, the same way iPhone reshaped the phone business. As a device needs to address the right issues, it won’t be a laptop. That’s the common mistake Microsoft, Dell, HP are always making…
It won’t be for people to do desktop work on, of course. It will rather be a MEDIA device, + the ability to take note + multi-touch + iWork application fully adapted to it.
This discussion is silly.
My iPod touch never leaves by pocket. I fookin LOVE this little device!
Message posted from my iPod touch
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
Given that with the e-mail, web browser, maps and whatever else gets written for it when the SDK is available no other media player will be able to cope.
Give the iTouch a GPS dongle and it’s game over for virtually every other mobile device.
Cheers,
Tim.
I dont have a cell phone and i dont need one. My Ipod touch does almost everything I need in mobility. Eagerley waiting for the next model.
“The Mac Touch or iTablet is the surprise of 2008. Released after the SDK.”
i hope not too long after the SDK, cause it is getting hard to wait for that device. i might break down and buy a touch first….
MORE STORAGE!!
I’m with Old Mac Man on this one.
Honestly, I’d prefer an iPhone with more space. I’d even consider the trade-off of thickness and battery life for one with a hard drive.
I’ve been waiting for my new house to be built before I spend any discretionary income. I get the keys next week, and soon after that, I’ll have my iPhone.
@ Shen,
It’s coming !!! In ’08 !!! It will have hand writting, larger display over the Touch. It will redefine mobility as most people only need web browsing, a little hand writting, document (book) reading, video watching and music listening when they’re on the more. A laptop is too much for that. And no PDA or tablet was previously designed for that. The iPod Touch is giving a BIG hint away !!!!
Now, when this year ??? It doesn’t belong to me to say it, but only to the Steve.
I meant “When they’re on the MOVE”
That’s pure BS. iPod touch was addressed to people who most likely wouldn’t have bought an iPhone, because of AT&T;limitation and contractual issues.
GPS and Garmin Maps for iphone, Google maps sucks.
@GPS!!!
I must disagree. I prefer Google maps over Garmin.
OMG OMG OMG!
Its like this is some ‘new’ idea…thestormglass.com – these guys saw the writing on the wall as soon as the iPhone came out…and they are just some random bloggers.
It staggers me that people get so excited about something so obvious.
The suggested price drops are nuts. Apple doesn’t do low-end. Instead, Apple will keep the prices higher but add memory and capabilities. Like a 16GB iPhone at the current price and 32GB Touch.
I would suspect this was a long term plan even before the iPod came out. iPod is a pretty generic term and a lot of people / rumors assumed that is was a way to start a platform and not necessarily just about a music player.
That appears to be the case. Can’t wait to see what happens in ’08.
VOIP on iPod Touch…?
I two years there will be no need for the phone at all?
iphone, ipod touch, itablet…… 30 years is just the beginning! They belong to a new platform. Jobs said, the battle of desktop is over, Microsoft won. The new battle front is on our palm. Apple had already occupies most strategic position: phones, ipods.. When the SDK and new device come out later this year, booommm….. Apple takes the whole new platform. So, there’re 50 more weeks in 2008, said Jobs during MWSF 08