what does one have to do with the other?
Actually more than you might think. I was seriously considering getting an iPod Touch for my wife (8gb) for our anniversary, but then the new iPhone price was announced.
We're definitely not getting the iphone (i'm not keen on payin $30 on top of my voice plan), but it's hard to imagine paying so much for an 8gb ipod touch now. I know, the logic doesn't totally make sense since the iPhone isn't an option... more psychology than anything.
But, here's a better way to look at it, answering the OP's original question.
Today, the 32 GB iPod Touch = $499.
I think it's reasonable to assume that the touch line will get refreshed in some manner in September... The same thing has happened with iPods getting refreshed towards the end of the annual back to school promotion many many times now that it's a fairly reliable pattern.
To illustrate, I have a plan to show you the way home... to your decision.
Please excuse the crudity of this model, I didn't have time to build it to scale or to paint it... or factor in discounting to the present value...
So, in September, I believe we can expect a $100 price drop in the 32 GB ipod touch. Let's give this a 90% probability. Also, let's not forget about the $10 update that you would most likely buy (let's say 100% certainty). Finally, suppose there is a model redesign, perhaps including GPS or some other hardware feature... let's give this additional utility a subjective value of $X with a probability of, say, 60%.
To sum up:
Expected Value =
p($100 price drop)*p($10 soft. update)*p(hardware feature)(A+B+C) +
p($100 price drop)*p($10 soft. update)*p(NO hardware feature)(A+B+C) +
p($100 price drop)*p(NO $10 soft. update)*p(hardware feature)(A+B+C) +
p($100 price drop)*p(NO $10 soft. update)*p(NO hardware feature)(A+B+C) +
p(NO $100 price drop)*p($10 soft. update)*p(hardware feature)(A+B+C) +
p(NO $100 price drop)*p($10 soft. update)*p(NO hardware feature)(A+B+C) +
p(NO $100 price drop)*p(NO $10 soft. update)*p(hardware feature)(A+B+C) +
p(NO $100 price drop)*p(NO $10 soft. update)*p(NO hardware feature)(A+B+C)
where:
p($100 price drop) = .90
p(NO $100 price drop) = 0.1
p($10 soft. update) = 1.0
p(NO $10 soft. update) = 0
p(hardware feature) = 0.6
p(NO hardware feature) = 0.4
A = $100
B = $10
C = $X
SO, after some simplifying:
Expected Value =
(0.9)(1.0)(0.6)($100+$10+$X) +
(0.9)(1.0)(0.4)($100+$10) +
(0.1)(1.0)(0.6)($10+$X) +
(0.1)(1.0)(0.4)($10)
= $59.4 + (0.54)($X) + $39.6 + $0.60 + (0.06)($X) + $0.40
= $100 + (0.6)($X)
If you buy a 32GB iPod Touch now instead of waiting till September for a probably-enhanced 32GB iPod Touch,
you will be paying a premium of $100 + (0.6)($X). If that is worth it to you, then by all means...
Personally, it's not worth it to me (or my wife).
Hope this helps.
Cheers,
DCBass