With the 4GB iPhone retailing at $499, I can easily see a touchscreen iPod coming in at $399.
The iPhone would be free of cellular functions, its camera, EDGE, bluetooth, wi-fi possibly, Google Maps, YouTube etc. all of which would cut down costs. As mentioned on an article several months old now, the iPhone is making almost 100% net profit. With cheap hard drive prices, a 40GB iPod would not cost much more than 4GB Flash.
A multi-touch iPod may eat into some iPhone sales but there are probably thousands of iPhone sales that cannot be made due to the small size of storage. With half of the functions removed as well, costs would be further cut down. $399 is a perfect price point, which means that the iPod retains its premium price tag compared to the rest of the line (Nano and Shuffle), but it still has a price lower than that of the iPhone.
Last year saw the first time that Apple made such a minor update to a major product line. They cannot afford to do the same thing again this year. Despite other companies' attempts, Apple really is one of those few companies that can come late to the market and still dominate. Apple's market share has fallen quite sharply, in my opinion, from over 90% to around 60%.
Innovation is needed in the market and it seems that only Apple can bring what is needed to the market.
The iPhone would be free of cellular functions, its camera, EDGE, bluetooth, wi-fi possibly, Google Maps, YouTube etc. all of which would cut down costs. As mentioned on an article several months old now, the iPhone is making almost 100% net profit. With cheap hard drive prices, a 40GB iPod would not cost much more than 4GB Flash.
A multi-touch iPod may eat into some iPhone sales but there are probably thousands of iPhone sales that cannot be made due to the small size of storage. With half of the functions removed as well, costs would be further cut down. $399 is a perfect price point, which means that the iPod retains its premium price tag compared to the rest of the line (Nano and Shuffle), but it still has a price lower than that of the iPhone.
Last year saw the first time that Apple made such a minor update to a major product line. They cannot afford to do the same thing again this year. Despite other companies' attempts, Apple really is one of those few companies that can come late to the market and still dominate. Apple's market share has fallen quite sharply, in my opinion, from over 90% to around 60%.
Innovation is needed in the market and it seems that only Apple can bring what is needed to the market.