Price Drop

[Nadav]

I've been thinking about getting an iPod touch for a couple of weeks now, and I've been wondering when the next hardware update will be. I realize that nobody is sure when there will be a revision, but I feel like there will be one soon. I'm leaning towards the fact that there will at least be an iPod touch price drop on July 11th for 3 simple reasons.

1. The Back To School Promotion. Right now you can either get a free iPod nano which is $199, or you can get an iPod touch for $299. This doesn't really seem to make sense, why would you get an iPod nano, when you can get a touch, and then sell it for the same price and then buy the nano and have an extra $100?

2. 3G iPhone. It is only $200 to get a 3G iPhone with 8 GB, while it costs $300 to get an iPod touch with 8 GB. I realize that the phone is subsidized, but it doesn't really make sense that Apple would make the touch $100 more expensive then the iPhone. Apple loves the iPhone, but I doubt they love it enough to hurt iPod touch sales.

3. Flash Memory. I don't know too much about this, but everyone here says that the prices are dropping like crazy, so Apple would not lose a lot of money if they dropped the iPod touch by $100.

If there is any flaw in my reasoning, please tell me. I'm around 90% sure that there will be a price drop, even though my reasoning is a bit biased since I'm hoping it will drop. :p

[aethelbert]

1. The Back To School Promotion. Right now you can either get a free iPod nano which is $199, or you can get an iPod touch for $299. This doesn't really seem to make sense, why would you get an iPod nano, when you can get a touch, and then sell it for the same price and then buy the nano and have an extra $100?
They're promoting the new development platform. Things don't have to be the same price to be in a promotion. If the price got lowered by $100, they'd have to lower the price of the nanos, then the shuffles, and probably the classics too. It'd be a mess.

2. 3G iPhone. It is only $200 to get a 3G iPhone with 8 GB, while it costs $300 to get an iPod touch with 8 GB. I realize that the phone is subsidized, but it doesn't really make sense that Apple would make the touch $100 more expensive then the iPhone. Apple loves the iPhone, but I doubt they love it enough to hurt iPod touch sales.
Umm, I think that they love the iPhone enough to hurt iPod sales. Look at where they've been putting their focus since macworld 07.

3. Flash Memory. I don't know too much about this, but everyone here says that the prices are dropping like crazy, so Apple would not lose a lot of money if they dropped the iPod touch by $100.
Well, for starters, they would lose $100 for every one sold. A capacity bump is more likely as they'd be able to hold the current price points. If they lowered the price, it would take longer to be able to update stuff as it would be too expensive and they probably wouldn't want to raise their prices, especially after lowering them.

Expect an update, not a price drop. For Apple, price drops are too rare to count on.

[techlover828]

don't expect a price drop, expect the 8gb to be replaced by a 16gb, 16g to 32gb, and maybe a 64gb to take the 32gb's place.

[danny_w]

2. 3G iPhone. It is only $200 to get a 3G iPhone with 8 GB, while it costs $300 to get an iPod touch with 8 GB. I realize that the phone is subsidized, but it doesn't really make sense that Apple would make the touch $100 more expensive then the iPhone. Apple loves the iPhone, but I doubt they love it enough to hurt iPod touch sales.
Except that the 3G iPhone is not $200, it requires a contract including a $30 data plan every month. The total cost makes the Touch seem cheap by comparison.

[only]

seriously, there should be a macro for this every time someone makes a thread asking the same thing that's been asked/answered about a thousand times on the first page alone.

[Heraklitus]

seriously, there should be a macro for this every time someone makes a thread asking the same thing that's been asked/answered about a thousand times on the first page alone.

^ ^

[eplchamps0304]

Its seems to me that ATT is responsible for the iphone being cheap not apple. This price drop fantasy has been going for the past 6 months, give it up already. The folks in the UK can get the 3g iphone for free. Compare that to the touch and youll see that it makes no sense to.

[Bwilky]

I'm pretty sure apple is getting money out of the contracts for the iphone. So that could be one factor in having the price lowered.

[eplchamps0304]

I'm pretty sure apple is getting money out of the contracts for the iphone. So that could be one factor in having the price lowered.

They are not

[aethelbert]

They are not
They are. The revenue sharing has just been restructured. Some will say that it's been obliterated, but Apple still gets money for the new contracts/renewals and activations, which will probably add up to about the same cumulative amount as the 2.5G.

[TwinCities Dan]

They are. The revenue sharing has just been restructured. Some will say that it's been obliterated, but Apple still gets money for the new contracts/renewals and activations, which will probably add up to about the same cumulative amount as the 2.5G.

I read somewhere (real informative right? :rolleyes:) that AT&T's subsidy is $265, so the iPhone 3G is really worth about $465 in Apple's eyes. I think the rev sharing is gone.

[aethelbert]

I read somewhere (real informative right? :rolleyes:) that AT&T's subsidy is $265, so the iPhone 3G is really worth about $465 in Apple's eyes. I think the rev sharing is gone.
hmmm... I wouldn't have guessed that it would be 465, but I guess that they're more concerned with what the end user pays. AT&T is still giving Apple money, though. It's just not going to be coming from the monthly subscription charges anymore. From what I understand, AT&T is just giving them a sum of money for every iPhone sale as they're getting new business from the phones.

[TwinCities Dan]

hmmm... I wouldn't have guessed that it would be 465, but I guess that they're more concerned with what the end user pays. AT&T is still giving Apple money, though. It's just not going to be coming from the monthly subscription charges anymore. From what I understand, AT&T is just giving them a sum of money for every iPhone sale as they're getting new business from the phones.

Yes, that's what I mean. I mean they foot the bill way more then the end user just to be the "exclusive" dealer/carrier in exchange for nixing the monthly%

p.s. Like I said, I can't cite resources... :o :)

[ajenda]

don't expect a price drop, expect the 8gb to be replaced by a 16gb, 16g to 32gb, and maybe a 64gb to take the 32gb's place.

So...you dont think the 32 gb will drop in price...c'mon...it has to. I can't imagine the 64gb for $599..no way! Who here is willing to pay that???
Memory is getting so cheap now. It would make sence for the 32gb=$399 and 64gb=$499.

[Grentz]

So...you dont think the 32 gb will drop in price...c'mon...it has to. I can't imagine the 64gb for $599..no way! Who here is willing to pay that???
Memory is getting so cheap now. It would make sence for the 32gb=$399 and 64gb=$499.

He meant the capacities will move into the price slots like has happened with other model lines. So for examples sake, they will first off just axe the 8gb:

Current Price Structure:
$299 = 8gb
$399 = 16gb
$499 = 32gb

Future Structure:
$299 = 16gb
$399 = 32gb
$499 = 64gb


THIS IS NOT ANYTHING OFFICIAL OR RUMORED, just showing the idea of how capacitys moving down the price structure works.

The issue is that 64gb Memory IS expensive still, it is coming down in price, but 64gb Solid State is still very new and very expensive. I dont see 64gb coming anytime real soon to the ipod touch at least for any price in this world.

[TwinCities Dan]

He meant the capacities will move into the price slots like has happened with other model lines. So for examples sake, they will first off just axe the 8gb:

Current Price Structure:
$299 = 8gb
$399 = 16gb
$499 = 32gb

Future Structure:
$299 = 16gb
$399 = 32gb
$499 = 64gb


THIS IS NOT ANYTHING OFFICIAL OR RUMORED, just showing the idea of how capacitys moving down the price structure works.

The issue is that 64gb Memory IS expensive still, it is coming down in price, but 64gb Solid State is still very new and very expensive. I dont see 64gb coming anytime real soon to the ipod touch at least for any price in this world.

Seems logical. That's how it goes with technology...(not just :apple:) ;)

[Radio Monk33]

I don't see why people try to justify the high cost of the touch in comparison to the iphone's long term cost.

You're not comparing the same thing, as the iphone's contract includes cellphone service and data plan. Apples to oranges.

[.Chris]

I'm thinking of geting a 32GB ipod touch to replace my current 16GB, but if a 64GB comes out for the same price and I buy the 32GB from the apple store would they allow me to return the ipod for the 64GB that would be the same price

[jayhawk11]

I'm thinking of geting a 32GB ipod touch to replace my current 16GB, but if a 64GB comes out for the same price and I buy the 32GB from the apple store would they allow me to return the ipod for the 64GB that would be the same price

Is this a serious question?

If it is...yes, you could do that. As long as Apple releases the hypothetical 64GB iPod Touch less than 30 days after you buy your 32GB, and you're willing to pay a 15% restocking fee.

[.Chris]

Is this a serious question?

I was just asking a question

[HP3000HYD]

Yes..
The IPHONE will be $199,
but,
that is with a new contract I thought with AT+T.

I know you know by looking at most all
of the celluar service companies,
you can get a "$500 phone" for about $100 or $150
or less,...when you start up a 2 year contract
with the provider.
So,
the price of $199, has no signifigance at all
for a REAL price for the actual phone.
You know.

[Grasbak]

I think people may be underestimating how good the iPod Touch is.

As time goes by, more & more wireless networks are available meaning the Touch becomes more and more connected - without 'expensive' mobile operators.

Like most posters, I dont see a price drop coming in. Just bumps to storage.

[eplchamps0304]

I don't see why people try to justify the high cost of the touch in comparison to the iphone's long term cost.

You're not comparing the same thing, as the iphone's contract includes cellphone service and data plan. Apples to oranges.

With or without the existence of the iphone the touch is expensive. I mean, $300 for 8gb. It is a well known fact that the iphone cost what it does because of the ATT subsidy. This happens all the time with phones.

[tonie]

hoping to find a used touch for 150 shipped.

edit: found a 16gb itouch for 200 local. don't know if i should pull the trigger or not.

[danny_w]

hoping to find a used touch for 150 shipped.

edit: found a 16gb itouch for 200 local. don't know if i should pull the trigger or not.
How in the world did you manage that? You can't even find an 8GB Touch for that around here. The 16GB versions are at least $300-$320.

[Grentz]

How in the world did you manage that? You can't even find an 8GB Touch for that around here. The 16GB versions are at least $300-$320.

Look around online, you can store 16gb models for around $250 - $280 regularly on ebay. $200 is a darn good price though for the 16gb.

Heck, I just scored a brand new 32gb for $120 less than the MSRP on eBay!

[hinchesk]

I think people may be underestimating how good the iPod Touch is. As time goes by, more & more wireless networks are available meaning the Touch becomes more and more connected - without 'expensive' mobile operators.

Like most posters, I dont see a price drop coming in. Just bumps to storage.

Agreed... once Apple fills out a product line there's rarely any price point changes. The iPhone business model is still maturing... Apple has a better idea on the pricing for the Touch.

What I'm waiting for is the other improvements to the Touch that the iPhone 3G is getting. Sure more space would be nice but 32Gb is fine for now. Having 24 hours of audio listening time would be sweet... as would GPS and improved audio (although I suspect this is call quality focused and may not affect music listening).

[.Chris]

why would get a 8GB now? Same with the nano and shuffle. If they have the money might was well go out and spend it well...