Analyst: Apple needs new iPod Touch by September

ipodtouch

Is it the end of the road for the first-generation iPod Touch? An analyst from Lehman Brothers seems to think so, according to Apple Insider. Speculation began as both Apple.com and Best Buy seem to be scaling back on their respective supplies of the device. Apple’s shortage is somewhat easy to explain away, as the company is offering a free 8GB iPod Touch with the purchase of certain Mac computers as part of a back to school promotion (Back to school?? School just ended!) but Best Buy has no such promotion, yet “has seen reduced supplies of 16GB models at its own locations.”

The analyst, Ben Reitzes, says in a recent report to clients sent out on Tuesday…

"We believe Apple will need to reposition the iPod touch product by September now that the iPhone acquisition price is lower… We expect the iPod touch to experience significant cannibalization from lower-priced iPhones."

If a new version comes out in September, that’s fine with me. But reasoning that a $199 iPhone is going to kill off a $299 iPod Touch doesn’t take into account that the iPod Touch doesn’t require a two-year service agreement of at least $70 per month. If anything, I’d guess that we’d see price reductions on the various iPod Touch models, but all the cries of “Why would I buy an iPod Touch when I can just get a new iPhone for less?” sound fine now but might not be as loud once the new iPhone actually ships.

via Ars Technica

16 Comments/Pingbacks so far

 
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weatherman (Who am I?)

The iPhones don’t need to do it - the iPod Touch is killing itself! Apple needs to increase the storage, drop the price and throw in a GPS chip and Bluetooth to the iPod Touch to make it actually just like an iPhone without the phone bit, and then you might see some people picking it up. I fully expect them to do all those things come September.

 
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ryan (Who am I?)

Yeah, upgrades like weatherman mentioned would make a difference.

But its more likely you will only be able to use the wifi on ‘apple’ brand wifi only available at $tarBuck$ with the purchase of a 4 dollar latte

Now that sounds more like a Apple upgrade

 
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Constable Odo (Who am I?)

I’m all for more memory (64 GB worth) and stereo bluetooth, but I don’t have much use for GPS as of yet. Also, the more battery life. All the better for longer game playing sessions.

 
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Jordan (Who am I?)

Why Bluetooth weatherman? and GPS Is pointless on the touch cause theres no wifi in a forest or in your car

 
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Carol (Who am I?)

Since I don’t need another cell phone… nor to stick ear-buds in my ears all day… I don’t watch a lot of TV/video.

I need a 4gb (at most) Touch…. I only need to do Wi-Fi.

Once I can get to a free, hi-speed, hot-spot… I have *EVERYTHING*. (Billions of web-pages worth of data, email, video, audio, everything that is online.)

4gb Itouch… for about $150.

 
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harp (Who am I?)

Jordan: you don’t need wifi for GPS.

 
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nando (Who am I?)

Also we need a speaker on the ipod touch..no use sharing youtube videos with earbuds

 
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Marc (Who am I?)

Yeah, speeeaker, please.

 
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Henry S (Who am I?)

I really just want a Touch for a lightweight PDA with WiFi. Now that one can download apps from the App Store, that increases its utility. I don’t need more memory; if I want music, I’ll use my 60 GB Classic.

 
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Ian Wedlock (Who am I?)

—–> Harp & Weatherman. It is all fine and dandy to have GPS added but what are you going to do with GPS when you don’t have Wifi. How will you load the maps and directional info and what not. As far as I know, the only way that car GPS units do it without wifi is due to the fact you have purchased a WAY overpriced CD that has the current (for the time being) maps on it. My point is, GPS is pointless unless, like Ryan, you are in Starbucks drinking your $4 latte, and trying to find your way to Brooks Brothers to buy a belt/tie.

What would be sweet is a camera thrown into the new ipod so that “The Rest of Us” can take pictures and beam them up to the “cloud” and post them on our MobileMe web galleries. That is of course, when MobileMe feels like it wants to work.

Did you like the “rest of us” reference since that was the theme for the whole PUSH (BS) hype with mobileme?

 
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g dub (Who am I?)

stop being poor and spend $300.

 
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robinson (Who am I?)

You mean $2,000+, don’t you?

Those monthly bills add up quickly!

 
veratek

Man they should really drop the price on the touch to at least $199.00

 
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saul (Who am I?)

stereo bluetooth for my wireless headphones!!
and more memory!! i need at least 32gb but i don’t wanna spend $500!!!!

speaker would be cool too! but it better be alot louder then the iphone!!!

 
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Barthold Van Acker (Who am I?)

Let’s have GPS (and the possibility to download map regions as needed), a camera, more memory. And please, no, no speakers! Let’s keep the music for ourselves, or share it inhouse with a speaker system, or share it with splitters and headphones. But please, let’s not disturb the surrounding world with even more noice.

 
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area codes (Who am I?)

You know you CAN store GPS information on the HD of the ipod touch.

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