Ever since I got my iPod Touch back in September of 2007, I have been inlove with it, and use it everyday. Of the many iPods i’ve owned, and used over the years, this one is my favorite. Tha beiging said, the announcment of the new iPhone 3G earlier today was a, not supprising, but b. interesting.
Straight from the source (apple.com), a new 8GB iPhone will retail for $199. A new 8GB iPod touch, $299. For the price of an 8GB iPod touch, you could get a 16GB iPhone in Black or White! That is very interesting isn’t it?
One of the key differences between my choice of getting the iPod touch over the iPhone was the price. (I am an at&t wireless customer, so no unlocking needed). Now that the table’s have turned, and the iPhone is $100 cheaper then its strictly music based sister, I have a major dilemia on my hands.
Let’s put aside all the differences between the phone, and the music player, and just think it through this way. Either Apple is making no profit, or taking loss on the new iPhone in order to gain market share. Or they are moving away from the portable music industry, and into the mobile phone one.
Both scenarios I find hard to believe. As for the first choice, well, considering that it was estimated that Apple was making up to if not over 50% margin from each iPhone v1 sold last year, it’s hard to believe that they drastically cut that margin to 5% even 1%. Now, I will agree in a year’s time some, if not most of the components inside the iPhone have decreased in price, but to shave off 50% just seems unlikely.
Now onto the seemingly more unlikely second choice. Seeing as how most people claim that the iPod is one of the main factors in bringing Apple as a company back from the dead, and is credited with it’s famous halo effect at increasing Apple’s market share. But certain events need to be taken into account. With the exception of the iPhone, the iPod has seen less new updates over the past year compared to the rest of the Apple product line. Granted, a few processor speed bumps are no proportional in iPod terms, but, increase battery life, increase storage, and decrease prices are all things missing.
Even in the past few months, with the SDK, it’s been mostly geared towards the iPhone, whereas many of the apps will be perfectly at home on the iPod touch as well. Is it just me, or is it seeming like Apple has been putting less into the iPod platform, and more into the other media outlets.
Steve Jobs said there were three parts to Apple today, Mac, Music (iPod, and iTunes), and iPhone. However, the way I see things today, I see it as the iPhone, and iTunes becoming more powerful then the iPod itself. Which could be a good thing, or a bad thing, we may never know.
Now, I could be totally, and completly wrong about all this, and in 2 weeks, Steve Jobs could announce a brand new iPod that puts everything before it to shame, and I’ll be forced to eat my words. But I don’t see that happening.
Now I just need to decide if I want a new iPhone 3G or not…