Can Apple make the iPod touch attractive now?

Section: iPod + iTunes, iPod touch, iPhone + Communications, iPhone, Originals

As we all know, Apple cut the price of the iPhone to $199, making the 8GB iPod touch now the same price as a 16 GB iPhone. Of course, in the long run, customers will be paying just as much if not more for the iPhone 3G than the original iPhone, but who thinks about that when you see “iPhone - $199; iPod Touch - $299?”

There are a few solutions to this, none of which are great. I outline them here.

1. Drop the iPod touch Price - This is the route most people jump to right away. “Just drop the price!” But look what that that would do to the iPod line: The iPod Touch would probably drop to $149, which would mean the iPod nanos would need to drop to $49 for the 4GB, $99 for the 16GB. Then the shuffles could be bumped off. These prices are slightly ridiculous, though not un-doable.
2. Kill the iPod touch - This just cannot happen. The iPod Touch is a fantastic device for those who already have phones, don’t want a phone, or don’t want to use AT&T, but still want the iPhone experience and apps.
3. Sell inactivated iPhones as iPod touches - This is the route I think makes most sense for Apple and the consumer, though AT&T might not like it too much. iPhones (perhaps only the smallest capacity version) could come preloaded with only iPod Touch apps (No Phone or SMS) and then customers could either choose to buy it as an iPod or as an iPhone. If they buy as an iPhone, it will be activated in store anyway, and part of the activation could be a quick download of the phone and SMS apps. Plus, this would be a nice upgrade for iPod Touch at the same time: $100 price cut, with GPS, bluetooth, volume buttons, a speaker, camera, and more added.

Not one of these is perfect, but I think number three is the best for both company and consumer. Of course, I’d love number two, but that won’t likely happen.

What would you like to happen? Sound off in the comments below.

Full Story » | Written by Adam Fisher-Cox for Appletell. | Comment on this Article »