guess what? They don't cost two grand nor do they require a hundred dollar monthly plan since the many carriers are offering plenty of affordable plans that cost much less than they used to).
http://www.forbes.com/sites/ewanspence/2013/01/13/the-mythical-budget-iphone-mini-would-cost-2000/
For the iPhone 5 16GB the total you are committed to paying now is between $2,275 and $5,755.
I'd like to add that these figures do NOT include taxes which in my experience are around 15%-20% of the total bill ($340 to $455!???)
Keep in mind, before the service plans are factored into account, to buy an iPhone one is paying
three times the cost of an iPod Touch.
I am simply stating that iPods do not have the same kind of appeal to the mass as they used to because of iPhone and other smart phones becoming very common and the fact that they've become a product that Apple do not give much attention to as result.
I'd argue that the iPod does not have the same kind of appeal
because Apple hasn't updated it to keep up with the iPhone (and competitors--no the ipod doesn't really have a good true competitor but when you consider a Nokia Lumia or Google Nexus can be cheaper than an iPod, those are competing devices). When my 4th gen ipod touch came out in 2010, it had
basically the same specs as the iPhone 4 (retina display, A4 chip, front and rear cameras, all of which were new features shared by both the iPhone and the iPod, and were new features not offered before on any device). The Touch lacked only the GPS chip and compass (battery life was a bit smaller, but performance likely equivalent considering the high battery usage of mobile data chips).
As I recall, the sales numbers were estimated at being roughly equivalent for iPhone vs iPod touch+iPad. Today, the iPhone greatly outsells the iPod Touch. It's a little bit chicken and egg, since we don't know how many more iPod Touches would have been sold had they been updated (the camera on mine for instance is abysmal and battery life is poor), but I'd argue that that sales ratio could have been maintained if the product was still on par with the phone offering (today the current iPod touch has a processor
two generations older than the current iPhone, and
is in no way equivalent to an iPhone 5c/s minus the cellular radio).
For the record, I own an iPad Air, and love it. It's a great device, and it costs less than an iPhone! It has the latest, greatest processor, and all the newest features that Apple offers (except the thumb scanner which I would never use as I don't lock my devices). The Air has a beautiful big screen and is far superior to a phone for me, and costs less! Now, just make that in a smaller form factor for less money, and call it the iPod Touch. THAT is what the Touch used to be.