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iPod touch Is 5th gen iPod touch the last model...
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It might be a declining business, but it's still profitable. I expect that there would be an update in September or October of this year.
A: NO.
iPods will slip to 2-year updates. There might be non-development of all designs aside from the iPT after this year. The iPT can always be improved with camera/memory/battery/processor, however it will not need yearly attention.
I wouldn't be surprised to see 3-year life cycles which upgrade merely memory and camera every couple years.
iPods will slip to 2-year updates. There might be non-development of all designs aside from the iPT after this year. The iPT can always be improved with camera/memory/battery/processor, however it will not need yearly attention.
I wouldn't be surprised to see 3-year life cycles which upgrade merely memory and camera every couple years.
When Tim refers to the decline of iPod as a product line, I believe he's really referring to the media player-only devices: Shuffle, Nano, and Classic - single-tasking devices in a multi-tasking world.
iPod Touch is an iOS device, even though it's marketed under the iPod brand. Except for screen size it's a Wi-Fi-only iPad. In most cases, it's purchased for kids who are too young to have a cell phone. I doubt Apple would phase out "My First iOS Device," a gateway drug for the iTunes and App Stores. There's way too much music, video, and apps aimed at young kids, and iPads are too large for kids to carry wherever they go.
When it comes to reporting sales by product, Apple only has 6 categories: iPhone, iPad, Mac, iPod, iTunes/Software/Services, and Accessories. 2013 was the first year that iPod sales were smaller than Accessories, and the first year it fell to the bottom of the list in terms of sales. For now, it's just a bit smaller than the Accessories business - they're about as likely to kill iPod now as they would be to stop selling Accessories.
Considering how important iPod once was to the company, it's right and appropriate to show its decline as a separate line item in the financial statements. Even if they were to continue the non-iOS models, I'd expect to see them moved into Accessories at some point, the same place they currently report Apple TV, AirPort, and TimeCapsule. At that point, it'll literally become a footnote to the financial statements.
If Apple TV and/or iWatch emerge as significant product categories, they'll get their own lines in the financial statements. It's at that point that we may see iPod shuffled off into the Accessories category.
iPod Touch is an iOS device, even though it's marketed under the iPod brand. Except for screen size it's a Wi-Fi-only iPad. In most cases, it's purchased for kids who are too young to have a cell phone. I doubt Apple would phase out "My First iOS Device," a gateway drug for the iTunes and App Stores. There's way too much music, video, and apps aimed at young kids, and iPads are too large for kids to carry wherever they go.
When it comes to reporting sales by product, Apple only has 6 categories: iPhone, iPad, Mac, iPod, iTunes/Software/Services, and Accessories. 2013 was the first year that iPod sales were smaller than Accessories, and the first year it fell to the bottom of the list in terms of sales. For now, it's just a bit smaller than the Accessories business - they're about as likely to kill iPod now as they would be to stop selling Accessories.
Considering how important iPod once was to the company, it's right and appropriate to show its decline as a separate line item in the financial statements. Even if they were to continue the non-iOS models, I'd expect to see them moved into Accessories at some point, the same place they currently report Apple TV, AirPort, and TimeCapsule. At that point, it'll literally become a footnote to the financial statements.
If Apple TV and/or iWatch emerge as significant product categories, they'll get their own lines in the financial statements. It's at that point that we may see iPod shuffled off into the Accessories category.
Apple TV just became a separate product category in the Apple Store. Could be the start of things to come for that new category.
As much as I hope you're right, it seems to make little money compared to Apple's other endeavorers:
Man, I hope they release 6th generation iPod touch.
As much as I hope you're right, it seems to make little money compared to Apple's other endeavorers:
Man, I hope they release 6th generation iPod touch.
The iPod touch forms the bulk of that 2 %.
The iPod Touch was indeed an important part of the iOS ecosystem. But with the iPad mini (I'm still puzzled as to how the mini is a replacement for the Touch) and iPhone, there has never been a time when there were less reasons to buy an iPod Touch.
Cell providers continue to offer family plans with iPhone subsidies that make getting an iPhone for a teen a better overall option than buying an iPod Touch.
The days of the iPod Touch being a less-expensive on-ramp to the iOS ecosystem are (virtually) at an end. The iPad Mini (non-retina) is the new iPod Touch. Only $70 separates a 16GB iPod Touch from an iPad Mini (non-retina).
Having said that, the iPod Touch will continue to be sold though become more stable (feature-wise).
Cell providers continue to offer family plans with iPhone subsidies that make getting an iPhone for a teen a better overall option than buying an iPod Touch.
The days of the iPod Touch being a less-expensive on-ramp to the iOS ecosystem are (virtually) at an end. The iPad Mini (non-retina) is the new iPod Touch. Only $70 separates a 16GB iPod Touch from an iPad Mini (non-retina).
Having said that, the iPod Touch will continue to be sold though become more stable (feature-wise).
How young of a child would you buy a phone instead of an iPod touch? There are still plenty of reasons to buy an iPod touch and as long as Apple is selling enough of them, they will make them.
I believe the Touch will survive because it's pocketable, and the Mini isn't. Kids and their games will not be parted. Further, what's easy for an adult to hold with one hand is not so easy for pre-teens. For smaller kids, Mini is a sit-down-only experience.
All that said, my young son has a retired iPhone 4, no cell service. I think this, rather than the Mini, is the major factor eroding the market for Touch. Since the majority of iPhone 4 and 4s purchases were by people new to iPhone, it's only within the past year or so that those phones have reached the end of their 2-year contracts and have become candidates for this kind of hand-me-down use.
If indeed nearly all of iPod's 2% is attributable to Touch, then the day may soon come when it's numbers will be merged into iPad on the financial statement. Re-brand it iPad Nano, iPad Micro, or some such.
In terms of branding, back when iPod Touch was introduced there was no iPad, and I don't think there were many parents thinking, "I'd like my kid to have an iPhone without the phone." Branding it "iPod Touch" made it an up-sell item for parents/grandparents seeking an iPod as a gift.
iPod as a power brand is over, and iPad is still on the rise. It's no longer a matter of "It's an iPod and so much more." It's time for "It's a small iPad."
I highly doubt it the ipod touch will be discontinued. There are a lot of people like myself who do not want an iPhone but want itunes and internet browsing and such.
Slip? It's already on 2 year upgrades:
iPod Touch (4th Generation) 2010
iPod Touch (5th Generation) 2012
Well I'm getting a 6G
Hope Apple do not phase out the iTouch, I'm on for the next generation (6G) at years end - a gift for Xmas for daughter, will probably also get her a "reconditioned" iPad Air or iPad Mini to go with this - an excellent device for travelling with the kids.
Hope Apple do not phase out the iTouch, I'm on for the next generation (6G) at years end - a gift for Xmas for daughter, will probably also get her a "reconditioned" iPad Air or iPad Mini to go with this - an excellent device for travelling with the kids.
If they release another tomorrow, my 2-year prediction is blown. There is no guarantee they won't release one in April-May-June, which isn't quite 2 years.
Most likely it is now a 2-year refresh. It could become 3 years with minor spec bumps in memory and camera more frequently. The reasoning being that the iPT doesn't need anything faster than an A6 due to size and market placement.
Actually it needs an A7 and adjusted memory to allow for 64bit apps within 2 years.
Tim Cook admitted that it's a declining business.
Number 1. I commend his candor and honest admission about this, rather than beating around the bush.
Number 2. Tim Cook's speech COULD have also been used as the perfect opportunity to say "And exactly because it's a declining business, we plan to discontinue the iPod line of products effective today."
But guess what???? Cook never said that. He never hinted that there are plans to discontinue it any time soon.
And so the conclusion is, that the iPod line may still have some life left, maybe another 1 or 2 products, before it eventually gets the axe down the road. I'm hoping that there is at least an iTouch 6th gen in 2014, I'd certainly buy it.
I, too, hope they do not phase out the iPod Touch. I was actually about to purchase a 64GB 5th generation model a few weeks ago to replace my 32GB iPod Touch 4G because the storage space was about to be full and it was going to be stuck at iOS 6.
But I decided to wait it out until the new model comes out come fall 2014. I hope it gets the Touch ID (for some gut feeling, I don't think it will have it...), the A7 and M7 chip, 1 GB ram, same color choices and remain at 4" screen size. That will be good enough for me, and I will certainly not hesitate to get one ASAP if that happens.
But I decided to wait it out until the new model comes out come fall 2014. I hope it gets the Touch ID (for some gut feeling, I don't think it will have it...), the A7 and M7 chip, 1 GB ram, same color choices and remain at 4" screen size. That will be good enough for me, and I will certainly not hesitate to get one ASAP if that happens.
If they release it with A7, the price will stay high and the sales will most likely fall quicker. It should really become the iPad Micro--the lush-camera version of the iPad.
Which will be a quicker decline in sales? No update? Or an A7 update? I strongly suspect it will be no update that sees sales stagnate quicker.
Third possibility: update with lower price and an A6.
I think the third possibility, which you overlooked, is the winner.