If Apple iPhones will soon start at $200, what happens to iPod touch?

“We’re now a week away from the announcement that will surprise no one. Steve Jobs will step up to deliver the keynote address [and the new iPhone] at this year’s Worldwide Developers Conference,” Rick Aristotle Munarriz writes for The Motley Fool.

As for the rumors, “the real clincher here is the persistent rumor that the new iPhones will sell for as little as $200… If it’s true — and everyone has been repeating that price since unnamed sources relayed it to Fortune last month — fence-sitting iPhone watchers are going to jump off for joy. The new devices will sell like, well, Apple pancakes. In fact, they’ll sell like iPhones,” Munarriz writes.

MacDailyNews Note: The source of the iPhone subsidy rumor was Scott Moritz, writing for Fortune, “AT&T’s planned $200 subsidy on Apple’s (AAPL) iPhone could increase the sales of the new 3G model by 50%, according to one analyst.” That one analyst was Bernstein analyst Toni Sacconaghi. Mortiz and Sacconaghi are hardly the dynamic duo of accurate Apple prognosticating/analyzing/reporting. Far from it, in fact. Please see these related articles: TheStreet.com’s Moritz tries to conjure up Apple iPhone ‘disappointments’ – September 10, 2007, FUD Alert: CNET article based on lone analyst’s view tries to gin up iPhone demand issue – January 25, 2008, and So-called ‘analyst’ finds his ‘missing’ iPhones – January 28, 2008.

Munarriz continues, “Consumers will love it. If exclusive domestic wireless provider AT&T takes on the bulk of the subsidized hit, Apple investors may love it… I get the euphoria, but shouldn’t shareholders also begin wondering about the fate of the iPod Touch?”

Full article here.

MacDailyNews Take: Yeah, and not only that, what about the iPod touch? Lower case “t.” Sorry, pet peeve. If, big if, the rumor is true, then we assume that Apple will simply be giving them away to Mac-buying college students. Oh, yeah, and selling them to people who just want an iPod rather than a mobile device that comes with a monthly bill.


  1. The cheapest AT&T;iPhone plan is about $70 per month once you include state and federal taxes. An iPod touch costs $0 per month. As has been said, there’s your big difference.

  2. I love my iPod touch and wouldn’t trade it for an iPhone ever. I’m looking toward the Fall when Apple releases the new iPods a 128GB (I’d settle for a 64GB) touch model. 802.11N WI-FI and GPS would be icing on the cake.

  3. I’ll say it again, the rumor of a subsidized iPhone first came from Scott Moritz, a well-known fudster working in cahoots with Jim Cramer. Scott was the one who said Apple was trying to sell 1M iPhones on their first weekend. This was of course, wrong, but Moritz set the bar so high, that iPhone sales seemed a disappointment, in order to drive down Apple’s price. This seems to be their goal again, to drive down iPhone sales, as people wait for the lower price. It’s FUD. This rumor has been repeated so often that people forget the original source, and that source is tainted.

  4. Apple should just allow the iPhone to be sold with or without a plan. Without a plan it would function in WiFi only and would basically be a replacement for the Touch. With a plan it would have the phone and cell data capabilities.

    Simple and easy to sell to anyone. Kill the iPod Touch!

  5. Hmm, I think the $200 price point for an iPhone is pure fantasy.

    Maybe $299 for the entry level iPhone and $199 for the entry level iPod touch.

    I’ll be less surprised if they simply remain at the same price points and receive a feature/storage/software bump.

    Now maybe a simple iPhone Nano comparable to the iPod Classic or Nano (no touchscreen and no fancy OS).

    That would be cool and go for $199.

  6. First off I’ll buy a 16 Gb iPhone for $200 cash… at the first opportunity!

    Secondly, I’ll buy the new improved touch… as it will become the touch table at the first opportunity… if it can be shown to be better than or equal too a Mac Book… at half the price!

    Better a “table” than a “book”

  7. It’s not that hard to look to the future to see what the product line of the iPod is going to become in the next few years. The classic and Nano’s will eventually merge into one device category(once HDs are totally gone). The iPod touch will become the standard iPod and the iPhone will be the high end. The iPod touch will come in higher storage amounts to make the product a true alternative to the iPhone. They will hit all the price point ranges that they have now.

    Shuffle, iPod Nano/Classic, iPod Touch, iPhone.

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