“Across the board price cuts announced by Apple on its iPod touch line of digital media players are ‘nice,’ but may not be sharp enough to drive a sales surge given economic conditions and the more aggressively priced iPhone 3G, according to one Wall Street analyst,” AppleInsider reports.
“American Technology Research analyst Shaw Wu, who had previously recommended that investors reset their expectations for Tuesday’s ‘Let’s Rock’ event, believes favorable commodity pricing on components such as NAND flash will allow Apple to absorb the new cuts without a material hit to its margins,” AppleInsider reports.
“‘As expected, the new second generation iPod touch has a slimmer form factor with lower price points of $229, $299, and $399, respectively for its 8 GB, 16 GB, and 32 GB models,’ Wu told clients,” AppleInsider reports. “‘While we are pleased to see lower pricing, we are concerned that price points may remain too high given the tough macroeconomic environment and relative to the 3G iPhone at $199 and $299.'”
Full article, in which UBS Investment Research analyst Maynard Um offers a completely different take than Wu (“we believe it will stimulate demand and benefit profits”), here.
Um is right. Wu is wrong.
Geeze, where do they come up with the names for these people?
Um _is_ right. I already bought my Touch iPod last night. The new features and price was what I was waiting for!
Um, Wu. What more needs to be said.
Bought mine too and it’s probably just waiting for the engraving to ship. Woohoo.
It’s a big world with many cultures and languages. However, the Um family got to Ellis Island and Maynard’s great-great-great-grandfather hesitated too long when they asked him for the family name. That story is a laugh riot at family reunions but they are probably easily amused.
They should have named him Wang.
When is Sigh going to weigh in here and make this a real party?
Seems really interesting these analyst guys feel the iPhone compares favorably on price.
Clearly these guys have company cell phones. My gut tells me when they sit down at the laptop, they completely lose any connection with how parents and young people spend money.
I’m not saying they didn’t do the math, but when I think about a little game player for my young kids that will play their songs and a Hannah Montana video on the airplane that costs $229, I have no problem seeing that as a viable alternative to the iPhone with its requisite $80+ a month service fee to AT&T;.
It’s kind of annoying how people keep comparing the iPhone and iPod Touch economically. They may be similar technologically, but they have two completely different markets. One is an iPod and the other is a phone.
Even though you can get an 8 GB iPhone for $199, if you’re not looking for a phone, then the $229 iPod Touch is looking pretty good. I’d say that the price point is pretty impressive for the Touch considering Apple isn’t getting a subsidy from AT&T;for it like they are with the 8 GB iPhone.
The price is carefully considered. I was expecting $249 for the 8GB model.
If it was $199 or lower, more people would consider getting a touch and carrying a separate mobile phone. Since it is higher, people who look at only the initial price points (and not long term cost of ownership) will get an iPhone. People who do consider the long-term cost of an iPhone will consider $229 to be a bargain price for an iPod touch.
You can actually get a refurb first gen iPod touch (8GB) at the Apple Store online for $179.
“Research analyst Shaw Wu” is a complete dumb ass. I bought 3 touches yesterday and 2 of my friends bought them as well.
(I added his name in quotes so he’ll be able to easily find this years from now when he googles his name.)
I’m still waiting on ipod touch features. just because i don’t want to saddle myself to a telco shouldn’t mean i have to give up a camera and gps. when is apple going to improve the camera in the iphone and make let us use voip on the touch?
If you want to know how dumb Shaw Wu is you only need to read my Opinion piece on MDN’s Opinion Page, where Shaw is quoted at Fortune Mag, with link, as not understanding how Deferred Revs for the iPhone worked. Just look for the 2nd piece, written by KenC. This is a freaking analyst for crying out loud, who can’t figure out how to account for Deferred Revs in his model.
Nothing prevents you from using VoIP on that touch. According to some reasonably reliable sites, the new touch has the ability to accept analogue audio through iPhone headphones with a microphone.
If this is correct, someone will develop the necessary application to get VoIP over WiFi (remember, there are no carriers’ restrictions on this one – it is Apple alone). Perhaps it will be Skype (how much different is it to code for the mobile OS X from the Mac OS X? It’s X-Code either way), perhaps someone else, but you’ll get your voice calling on that new touch.
Camera? On Touch? Perhaps next year. While it may make sense, they didn’t think it was going to be necessary in order to keep selling them. GPS? Not exactly very likely. The only reason it made its way onto the iPhone is because others already have it, and it serves the purpose of device consolidation (iPod/Phone/GPS in one). Touch is obviously in the oposite direction of this concept (no phone), so GPS chips would be just too much hassle to put in, and too much extra on the retail price.
Keep in mind, people, this is just an iPod; it’s not Apple’s flagship mobile product (that would be the iPhone). If you saw the commercial, you’d realise they’re pitching this thing as an excellent gaming device. Think DS, or PSP, on mega-steroids.
I say a 16gb touch for $199, 32gb for $299 and 64gb for $399 is the sweet spot. Hopefully Apple can reach that by 2009.
Either way, it only goes to show there’s plenty left to do with the iPod and those who claim Apple is out of ideas are dead wrong.
Um – Wu, would you buy a Shamwow?
Wu has no credibility and writes to try to make himself appear clever.
In this Wu sentence, I’ve put in bold what he wrote, and in brackets what is correct;
…’While we are pleased to see lower pricing, we are concerned that price points (prices) may remain too high given the tough macroeconomic (economic) environment … “
Uh.,,, they’re both Apple products. Who the hell cares if they buy an iPhone over an iPod? EIther way, Apple gets money.
We’re about to reach critical mass here. Even Steve must realize it. The phone and the tunes player are what they are. All this disappointment? What were you expecting?
The Mac is where the future lies. When, on when, will we see a return to the core business of Apple? Only then will we break out of these $150 AAPL doldrums.
Anybody can do phones and tunes players. Only Apple can do the Mac!
I’ve got my touch and I’ve got a cheap t-mobile phone for calls. It’s a great combination. I do not pay a data charge and I have NO dropped calls on t-mobile (I used to be on at&t;and had tons of dropped calls.)
Goblin-you’re a troll, go back to best buy.
I think the ipod touch is way overpriced. Even if you are getting a phone at 199, the monthly fees will make the phone even more expensive, but given that, the iTouch is in a niche that needs to be defined. Is it an iPod? Is it an iPhone without the phone? Is it a Game machine? A PDA?
I believe that Apple is counting on this obfuscation to drive the price to unique levels for a unique product. However, if they really wanted to get it into the hands of everyone in this economy, $150 would have been a better starting price.
RickW.
@Enough Said
You can go to best buy with goblin. Read the financials, Macs make the money!
rickw
Apple does not want you to have a touch.
When is the 32gb (or even better 64gb) iPhone coming out? I would happily pay $499 or $599 for either.
In case Wu is a ‘tard, the 3G iPhone is NOT $199 and $299.
The iPhone is $199 and $299 PLUS A FRIGGIN’ TWO YEAR CONTRACT @ AT LEAST $80 USD PER MONTH.
Frigtard
I stole this quote from a comment on CNet directed at the writer of a stupid story concerning the neutron collider. “Why the Large Hadron Collider must be stopped” posted by Chris Matyszczyk. It’s a really stupid article with a great comment by TBaxendale-it suits Mr. Wu: “I cannot ask you not to be ignorant, but I can request that you keep your mindless, uninformed banter to yourself so that others might not be tainted by you.”