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Well your idea of a lot of money and Apple's are quite different. With less than 5% of sales going to ipods it looks like the Touch is becoming a legacy device that Apple holds on to just for old times sake like the ipod Classic. Also as they sell more phones each year there is some continuing market cannibalization by adults just giving old iPhones to their kids rather than buying them new Touches. Don't get me wrong I do want to see a new one and would buy it but it's future is limited. When they brought out no new model last year I went and bought a refurbed 3rd Gen as my new Touch since I needed the 64GB storage. Unless they bring out a new model I won't have any reason to buy another one again. I'd be more likely to get a used iPhone cheap and keep it off network.

I see tons of iPod Touches around. They are far from dead. They won't get the same attention the iPhone will, but they will stay around.
 
This past holiday season I don't think I know one family that did not give or receive 1 Apple product, and the Touch was one of the most given in families I know. First of all it is like a Gateway Drug to the iPhone. Kids that are too young for the iPhone and data plans can get aquainted with IOS and when they are ready for the jump....which phone do you think they will go for? Keep in mind, they already made plenty of purchases with their iTunes gift cards, do you think they will want to have to purchase all those apps on another platform?

When my wife and I went on our Honeymoon cruise, the Kids iPod Touches saved us on any roaming when we were able to text via wifi with iMessage and were ale to talk using Wifi with Facetime.

The iPod Classic is great for Audiophiles who choose to convert their music to the highest Bitrates available and be able to store as much as possible on one device.

Also remember the purchase isn't just the device, but the apps and music, it is the income that keeps on giving to Apple long after the sale of the 1 device....iPod are the beginning of a growing revenue stream....

There is a portable device for every category, and Apple has locked it up. Why would they dream of discontinuing any of these, particularly with the thought of some other platform waiting in the wings to swoop in on one of those categories and take it for themselves?
 
There seems to be 2 extreme views regarding the future of the iPod Touch.

The first is that Apple will discontinue the iPod Touch. I highly doubt that Apple would do that. As has already been mentioned numerous times, it is still a very viable consumer product.

The second is that Apple will continue to enhance it with new generations. I doubt that Apple would do that too. The used iPhone market is hotter and more competitive than ever. A good percentage of that is due to people seeking to use off-contract iPhones as nothing more than an "iPod Touch Pro". For about the same price as a new iPod Touch, one can find a new or gently used iPhone of comparable capacity. Even if they never activate it as a phone, it makes a better iPod Touch than an iPod Touch.

It is in Apple's best interest to make used iPhones desirable. It keeps the prices up and demand up. An improved iPod Touch with faster processor, true Retina display, and 5MP camera would not only lower demand for the used iPhone market, but also lower the preceived value of new iPhones.

I believe that the most likely scenario is that Apple will put the iPod Touch into a "steady state". Maintain and continue to manufacture the current model... just like they did with the iPod Classic.

I purchases a 64GB 4G iPod Touch shortly after they were released. It was a terrific device and it was my rough and ready device and on-the-go camera when I traveled in Europe. Even though I now have a prepaid iPhone 4, I still use my iPod Touch (in a CookieCase giving it an iPhone-like appearance)... and will continue to use it.
 
Wirelessly posted

A faster processor and better camera is all it needs. I am not too fussed what they do with the iTouch. It never was a training wheel for me. I just use it for when I'm out n about for music etc.

It makes for a great PDA...
 
IPod touch dominates in the demographic that its made for, teens. Almost every teen I know has one and uses it for everything from games to iMessage etc
 
iPod touch will live

The iPod touch is essential for two reasons:

As mentioned before, kids and teens get iPod touch- make $100+ in iTunes and app purchases- a couple years down the road they want a phone, which one are they gonna get? The one that they already know they love the os and have money invested in software or the one their unfamiliar with and they would have to start a new with?

Music-movies-app and in app purchases. Yes, very little revenue comes from the sale of iPod touches. You must consider though who the target audience is for the iPod touch. It's made for the 9-16 age range, a range MUCH more likely to play a lot of games and be media heavy. Also, they are often using their parents iTunes accounts and being wasteful. I agree that apple prob dosent make much money off of iPods outright but I think they make quite a bit in the long run.
 
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