The case for a $149 iPod touch?

Seth Weintraub
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February 18, 2009
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I've made my case for a $149 iPod touch over at Computerworld.  Thanks for your input ;)

...Many Apple customers (myself included) really wish Apple would build a Netbook.  I want an Apple Netbook not necessarily for the cheapness, but more for the smallness (though the cheapness wouldn't hurt) and of course to be able to run OSX natively.  Apple has said, again and again, that they can't make a Netbook that would compete in price with the ASUS, Acer and HP's of the world and they'd be proud to produce.  They simply can't get their margins, design and production costs down to the levels that the PC makers can.  Or they choose not to. 

But, when questioned on this, Apple execs always end up pointing to the iPod Touch and iPhone platforms as Apple's answer to the Netbook.  And they really have a great point.  The Touch platform has most of the same capabilities as a Netbook but is cheaper and smaller.

Maybe it is time to step it up in this area.  The 8GB iPod Touch is already a great deal for $200.  But really, the purchase is just the beginning of the customer's relationship with Apple.  Then, there is the iTunes and App store.  While they'd need to sell around $150-$300 of music and apps to break even on a $50-100 price drop, the price point might open Apple up to a whole new level of customer...

Comments (7)

Scott (not verified) | February 18, 2009 - 2:02pm

My iBook G4 died at the end of last semester. Having no funds to buy a new laptop, I decided to try using my iPod Touch in its place. With AirSharing and Iconic Notes I've done well enough. The only problem is that there is no word processor, which is tough when you want to edit a paper on the go.

9to5Mac Noob (not verified) | February 18, 2009 - 2:30pm

As long as the iPhone platform does not allow to create and edit standard word files (.doc), it won't be a replacement for many, many people using netbooks these days. Oh, and a keyboard would be nice too, ideally bluetooth with a small form factor, so we can carry it with us when needed.

9to5Mac Noob (not verified) | February 18, 2009 - 2:38pm

Apple's only problem these days is the price of a cell phone plan. Given the economic outlook, fewer and fewer families will be both able and willing to afford a $70/month cell phone plan. For those who are cannot do it, an iPhone goes unsold.

I used to think that a "nano iPhone" was out of the question, but I've changed my mind. Apple can create a very small and very attractive cell phone, with a feature set that exceeds the competition.

But there has to be something in a "nano phone" that's good for the providers. Right now, the low-end tier phone plans are running $40 per month, and the most restrictive plans are $30 per month.

Lots of phones are sold to kids as part of a "family plan", with discounted service. Even grade school kids are getting phones these days. So it'll be important to consider them as a large pool that is mostly missing out on iPhone technology.

All of this taken together must spell something out for both Apple and AT&T.

I imagine a nano phone for any low-end cell phone plan, with a limited, $5 data plan as an option. It'd be small, fancy, and every bit an iPod Nano, merged with a great-but-small display and cell phone chipset. It wouldn't support the App Store due to it's very small screen and limited computing resources.

It'd technically be a 3G phone, but limited by the provider in terms of when the $5/mo network interface could be used, and in terms of how much bandwidth it could consume... saving the user $25/month over a typical plan. It could send/receive email, texts, and have all the features of the current Nano.

Location awareness (GPS or otherwise) would be included, as would the speaker phone and bluetooth - these are common on all low-end cell phones these days.

pepp5 (not verified) | February 18, 2009 - 5:02pm

I hope that the case for a $149 iPod touch would not be much different than the case for an iPod touch of any other price. Protecting an iPod touch from scratches should be the same no matter what the price of the iPod is. =)

9to5Mac Noob (not verified) | February 18, 2009 - 6:25pm

This could be a somewhat netbook if iWork were able to run. Nothing too fancy just allow me to type out a letter/essay and sync it to my desktop for the fine tuning.

taoprophet420 (not verified) | February 19, 2009 - 7:37am

If they were to lower the price point to $149 it would kill the nano market which is by far the best selling ipod. i know i would choose a touch over the nano if they were the same price. wifi, crippled bluetooth appstore, and being able to do voip. I cant see apple lowering the price below $149 for the nano. I think 4199 or $179 wouldbe the lowest apple should go on the touch. I think 4199 would be best price for not improaching on the sales of the nano. A $149 touch honestly don't make since right now. Maybe including some touch features on the nano, but not a #$149 ipod touch.

taoprophet420 (not verified) | February 19, 2009 - 8:01am

I see the music with the nanos and shuffles for $49 to $129. Entertainment promoting the touch for gaming and watching movies from $179 to $249. Like you said tie it into the apple tv. Then i see the communicator line. Being a 5 inch and 7 inch touch with clear glass cover that folds down to type on. $39 for 5 incher and $499 for 7 incher. Promote this new model for email,internet,voip, word processing and a truly portable computer or a true netbook. I believe they need to keep the products pretty distinct yet being able to use the touch os to have apps that can be used on all devices except the music line.