Apple has had several product reorganization cycles throughout its history and it appears that the time is ripe for the iPod line to be re-assessed. Apple has never liked a crowded lineup so every so often we see products converged, others replaced or discontinued entirely and the lineup simplified. With iMessage providing messaging that can replace SMS and FaceTime supplying the building blocks for an iOS phone service (with camera disabled), an iPod Touch has essentially become an iPhone without a phone. What's been missing is a cellular radio. However, I don't anticipate the iPod touch merging with the iPhone. Instead, an LTE 5" iPad would without a doubt kill the market for the iPod Touch. It's led by younger individuals who don't want a phone contract but want access to iOS' app store and the iTunes store for music. With a larger screen for gaming, yet portable enough to be carried everywhere, a smaller iPad would leave few reasons other than price for somebody to buy an iPod touch and would even encourage a significant demographic of users to drop their iPhones. With the iPod touch replaced by a smaller iPad, this leaves the iPod line without a flagship product. The iPod Classic has been waiting for a heir in the music player segment for 3 generations and while the new iPod nano has been popular, it still can't replace neither the iPod touch in function nor the Classic in storage. A music focused device in a Nano candybar form factor could take on the title of iPod (without any prefix or suffix). If sold in 32, 64 and 128GB sizes, the Classic would be retired. The iOS line would consist of: Tablets iPad 10" iPad 5" Phone iPhone 5 Music iPod (candybar) iPod Nano (clip on/watch size) Another route could be to leverage the iPod brand and name the smaller iPad, simply iPod with the music segment falling to the clip on iPod Nano. We would have iPad (10"), iPod (5") and iPod Nano (clip on). Whatever the route taken, the iPod Touch is not a sustainable product as it's converging too close to the iPhone to make it a viable separate device. Meanwhile there's a demand for a Kindle Fire competitor. A smaller iPad (or larger iPod) would be a key differentiator to take it into the next decade.