Is Apple’s iPhone the real iPod Killer?

“Apple may be doing what the rest of the electronics industry has so far been unable to do: kill off the iPod,” Dan Warne writes for APC Magazine.

“Apple’s charismatic CEO Steve Jobs has announced he will sell the iPhone worldwide for $US199 — a move that he said would make the iPhone more affordable and therefore more able to compete for all mobile users’ business rather than just the high-end,” Warne writes.

“But Apple’s premium pricing of the first-generation iPhone was no mistake. Apple knew that if its most powerful iPod — the iPhone — was cheaper than other iPods, consumers would be confused and ultimately iPods would appear to be devalued,” Warne writes.

“An 8GB iPhone will, in fact, end up costing about the same amount as an iPod nano — a strategy that’s clearly designed to attack other smartphone companies, but may, along the way, kill off sales of the iPod,” Warne writes.

“Naturally, no-one’s game to suggest that the iPod will die-off altogether any time soon,” Warne writes. “There will always be a market for small iPod devices for jogging, leave-in-the-car iPods for car entertainment and so on. But it’s likely that the iPhone may become the replacement for many people’s iPod and mobile phone — bad news for other handset makers.”

More in the full article here.

49 Comments

  1. No.

    Not when there is the recurring monthly cost of phone service.

    Not when people will do battle on a bus over it because it costs so much – even @ $199, that’s expensive.

    Not when it does not work in the Great Republic of Vermont. (No ATT coverage.)

  2. Hahahahaha!!

    Kill off the iPod? With it’s HUGE storage capacity?

    Dream on.

    Apple REALLY screwed up with the iPod on only one thing…

    Not making a Firewire/USB combination like they did for optical/analog audio in/out.

    USB is GOD AWEFULLY SLOW compared to the old Firewire iPods.

    We Buy premium Mac’s for their higher connection speed options and then can’t use it to fill large capacity iPods.

    WTF APPLE????

    “God Dam America!” Vote for Obama!

  3. I don’t think so…

    When Apple cranks out an 80GB or 160GB iPhone, THEN the iPod will be dead. Even then, it’s a big Maybe.

    I like having a separate audio device. I’d rather have an iPhone with a charged battery, than one with a dead battery that I wore down listening to music.

    How about a hard drive based iPod touch, Apple?

  4. why does there have to be a killer ? cant another device merely be an equally or more successful product ? (probably not no ” width=”19″ height=”19″ alt=”raspberry” style=”border:0;” />)

  5. “An 8GB iPhone will, in fact, end up costing about the same amount as an iPod nano.” Uh, hardly, The Nano doesn’t incur monthly charges to be useful. The real question is how Apple will price the iPod Touch 2.0. (I’m holding out for a 16GB at $299.)

  6. It doesn’t matter how much storage they eventually put into the iPhone. There will always be a huge market that doesn’t want to pay a monthly fee to listen to music, watch movies, etc. It would not matter if Apple opened up the iPhone to every cellular carrier.

  7. You people are assuming that high capacity iPods are Apple’s best selling devices when in fact, it’s the lower capacity nano and Shuffle that are the best selling iPods. You also can’t dismiss the fact that the potential customer base for an iPhone is vastly greater than the one for the iPod. It’s only a matter of time before the iPod is effectively “killed” – by the iPhone.

  8. gzero: so let me get this straight. You want to listen to 16 gigs of music, so you have to buy a $300 iPhone and then $80 plus a month for service (assuming you have it in your area)? Don’t see it happening. Then why not have rented music with your iPhone contract? There are plenty of people who do not want to be locked into a contract for iPod only features.

  9. I’ve already dumped my iPods for my iPhone. Convenience wins. I’ve far too many songs to fit on any iPod so I’m used to making playlists. May not suit everybody but I think the article has a point.

  10. I have my iPhone in my pocket with the tunes and films I want to watch, and my 60GB iPod classic in my car loaded with my music.

    I also have a shuffle for cycling and jogging, and I bought a nano for no particular reason other than it looks cool, and I love iPods.

    So I don’t think the iPod is ready to die just yet.

    If I had to choose one, it’d be my iPhone – best phone ever.

  11. of course the ipod will disapeear because all functionality (5 MP camera, gps, mp3/video-player, handheld games) will end up in one convergence device soon. this convergence threat was the reason apple was developing the iphone in the first place. in a few years the iphone will have many form factors and price-points (like the ipod today) and you will be able to buy it unsubsidized (or much lower with a contract) and use it on any network prepaid. dont want the monthly fees? leave the phone-capability off and use it as an ipod (and wifi-ichat-games-itunes-video-player-whatever) device.

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