Full FeedCan Apple make the iPod touch attractive now?
As we all know, Apple cut the price of the iPhone to $199, making the 8GB iPod touch now the same price as a 16 GB iPhone. Of course, in the long run, customers will be paying just as much if not more for the iPhone 3G than the original iPhone, but who thinks about that when you see “iPhone - $199; iPod Touch - $299?”
There are a few solutions to this, none of which are great. I outline them here.
- Drop the iPod touch Price - This is the route most people jump to right away. “Just drop the price!” But look what that that would do to the iPod line: The iPod Touch would probably drop to $149, which would mean the iPod nanos would need to drop to $49 for the 4GB, $99 for the 16GB. Then the shuffles could be bumped off. These prices are slightly ridiculous, though not un-doable.
- Kill the iPod touch - This just cannot happen. The iPod Touch is a fantastic device for those who already have phones, don’t want a phone, or don’t want to use AT&T, but still want the iPhone experience and apps.
- Sell inactivated iPhones as iPod touches - This is the route I think makes most sense for Apple and the consumer, though AT&T might not like it too much. iPhones (perhaps only the smallest capacity version) could come preloaded with only iPod Touch apps (No Phone or SMS) and then customers could either choose to buy it as an iPod or as an iPhone. If they buy as an iPhone, it will be activated in store anyway, and part of the activation could be a quick download of the phone and SMS apps. Plus, this would be a nice upgrade for iPod Touch at the same time: $100 price cut, with GPS, bluetooth, volume buttons, a speaker, camera, and more added.
Not one of these is perfect, but I think number three is the best for both company and consumer. Of course, I’d love number two, but that won’t likely happen.
What would you like to happen? Sound off in the comments below.
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Option 4: Upgrade the Touch, drop prices by $50. Add camera, add RAM, offer colors. Perfect for people who don’t want to drop their current wireless plans.
People will say, “Okay, it’s $50 more than an iPhone but it does just about everything the iPhone does without a monthly fee.”
Option 5: Upgrade the Touch as above, don’t drop the price, but throw in a year of MobileMe.
on June 13, 2008 at 11:59 PM - LINKoption 5: Drop touch 8gb and 16gb
Introduce 32gb and 64gb touch models. This would make PERFECT sense, would ot impact ipod nano, iphone OR ipod classic sales. Its due for a refresh anyway.
on June 14, 2008 at 08:30 AM - LINKWhen considering the number of units apple sells, option #3 is totally absurd. It’s a titanic waste of money for apple to pay for vestigial components, let alone what it ground they would lose to the unlocking community they’re working hard to fight.
Additionally, the iPod Touch is designed to be dramatically thinner and more appealing than an iPhone aesthetically. Having a crippled version of the product makes it chunky and the unused potential (i.e. radio chips, speaker, mic, silent switch) makes the device appear fundamentally inferior to consumers, which would deter sales.
They won’t sell software-downgraded iPhones for use as iPods. It will never happen, ever.
on June 14, 2008 at 02:56 PM - LINKI don’t think ANY of these would happen. But Apple has to get the price of the iPod touch below $199. Consumers won’t think about contract fees or the benefits of not having a contract. They’ll think “iPod touch = iPhone without phone, but for more money? Why would I buy that?”
on June 14, 2008 at 03:20 PM - LINKThat’s a good way of describing what people will think. It’s going to be exciting to see what they do, I can’t see them eliminating the touch, and I think everyone’s right that the price will go down or the space (GB) will have to go up. :)
on June 14, 2008 at 03:47 PM - LINKThey’ve just got to lower the price….it’s as simple as that. How can they charge MORE for an “iPhone without the phone”? The monthly service and “over time” charges are irrelevant. I expect to pay less for an iPod Touch than for an iPhone because that is the way it has always been for as long as the touch has been out. Apple would be out of their mind not to lower the price of the Touch at this point.
on June 14, 2008 at 06:48 PM - LINKI think that Apple really put themselves in a tough place by making the iPhone so much cheaper. They could easily get away with charging more and their is really nothing Apple can do to help the iPod Touch without screwing themselves in that arena. I think that the best plan would be to have a 32 GB for around $125 and a 64 GB for $199. Maybe add a camera. Something has to be done to appeal to the people who don’t want the phone but could pay less to get it.
on June 14, 2008 at 09:49 PM - LINKIf Apple were to make 32/ 64 GB versions of the iPod touch, it wouldnt be below the current pricepoints. In fact, a 32 GB iPod for the same as a 16 GB iPhone isn’t bad at all, and could work.
on June 14, 2008 at 09:51 PM - LINKForgot to add this: If the iPod Touch was increased to 32 GB and dropped to around $125, I think that the best plan would be for Apple to drop the Shuffle and slash the Nano prices to closer to a Shuffle’s current prices. The Classics could stay the same, maybe drop $50 from both.
on June 14, 2008 at 09:53 PM - LINK@ Adam: That could work, but then something would have to be done to the Nanos and thus to the Shuffles as well (maybe something like $99 and $149 for the Nanos and maybe take $10 off the Shuffles)
on June 14, 2008 at 09:57 PM - LINKNo, everything would stay as-is, as the iPod touch would still be at the $299 and $399 price points, not cannibalizing other iPod’s pricing.
on June 14, 2008 at 10:33 PM - LINKI think that Apple could easily drop the shuffle, especially if the nano become more affordible. Lowering prices is not necessarily going to kill Apple. On the contrary, sales will probably go through the roof on all iPod models.
on June 15, 2008 at 01:00 PM - LINKRealistically, I don’t think dropping the price would work all that well, because it would effectively cannabilize sales of the classic, nano, and shuffle. I thought the whole concept of the iPod touch was a little strange to begin with.
What I would consider doing would be the eliminate the classic and replace it with a HDD-based touch. Bump the storage, keep the price where it is.
on June 16, 2008 at 05:43 PM - LINKApple won’t be dropping the price. It makes no sense for them to do so.
Currently they’re giving away 8GB iPod touches to all students who buy a mac for back to school. This is Apple’s way of clearing stock before September when they do their iPod updates.
Apple will get rid of the 8GB touch and introduce the 16GB at the current price point, and the 32GB at the current 16GB price point. 16GB touch - $299, 32GB touch - $399, possible 64GB touch - $499 (though I doubt this will come in september).
Someone mentioned that when you look at the Touch vs the iPhone, it’s fairly obvious the iPhone is the better buy - it’s the touch and a phone. Apple wants you to buy the iPhone instead of the touch. They make more money off of the iPhone over the 2 years in your contract than they do from selling you 1 touch for $299.
on June 16, 2008 at 06:00 PM - LINKi agree that the storage will go up but the price will drop 10-15 dollars so the upgrade is free.
on June 20, 2008 at 09:50 AM - LINKI think Jake L’s Option 5 is spot-on:
quote
... Add camera, add RAM, offer colors. Perfect for people who don’t want to drop their current wireless plans.
Option 5: Upgrade the Touch as above, don’t drop the price, but throw in a year of MobileMe. ...
end quote
That is truly exceptional thinking, in my opinion. Offering MobileMe for a year will not only add value for little or no additional outlay, but gets folks hooked on a subscription service that works great with the product. Later, when shopping for a new portable media device, and I’ve used MobilMe and like it, do I buy an iPod or some other brand? You bet, I’ll buy the iPod.
I don’t have any problem reconciling $499 for a 32 GB iPod Touch when it has some of the non-phone features of the iPhone, like a camera, GPS and, dare I dream, Bluetooth! My $200 Nokia tablet has all of this; granted I added the memory out of pocket, but the only thing I’m missing is want I want so desperately with this mobile device - iTunes’ ease of media management, media conversion, and subscription. On a Mac, it can’t be beat.
Apple should read the stuff you are all posting on this blog. There are a lot of great ideas and suggestions here; especially from the article’s author.
on June 26, 2008 at 05:23 PM - LINKI think its time the iPod got a speaker even if it doesn’t get a mic because that would ruin iPhone sails but have a decent, usable speaker to share YouTube videos would be nice.
And like most people are thinking, add more memory, maybe price drop and even a camera.
on June 27, 2008 at 10:35 AM - LINKMost of you are domd asses because the best plan would be to drop the 8 and 16 gb models and drop the price of the 32 gb model the 299 so it want interfer with any other ipod sales because lower it an lower would destroy any other ipod model. so you would buy the touch with more storage and as the same priced iphone 3g 16 gb and they may make a 64 gb model but don’t hold your breath. so that’s the best move for apple.
on July 4, 2008 at 05:03 PM - LINKMaybe that`s there sales ploy… Sell iPod for more to make people buy iPhone for less and pay monthly fees. If not, then we could be seeing a price drop soon.
on July 22, 2008 at 08:59 PM - LINKApple is giving away 8GB iPod touches for free, when a student purchases a Mac computer for “back to school” purposes. Chances are, they are clearing out their stock of the 8GB models, so they can eliminate them from the market completely. Then, the 16GB will drop to the current 8GB price, and the 32GB will drop to the 16GB’s current price. I’m not too keen on introducing a 64GB model, because, honestly, would anyone really buy an iPod for $500 dollars, especially when the economy is in the s**ter currently?
on August 20, 2008 at 01:17 AM - LINKOf course, this is all just my speculations, but if I’m right, these price drops may happen at the earliest in late October.
I think they shouldn’t discontinue the iPod touxh 8gb model imagaine it going like this .
8gb iPod Touch—$199
16gb iPod Touch—$299
32gb iPod Touch—$399
&& people say that they might brign out 60 orr 80 but thats a rumor and i have no idea if its true .
If they cut out the 8gb I’d be mad && I think for $200 it will fly off shelves literallyyy .
on September 6, 2008 at 11:16 AM - LINK