Is Apple planning a $149 iPod touch?

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We all know Apple will introduce its all-new potentially camera-equipped iPod range during its special event this week, now slight evidence has come to light supporting some earlier claims the company may stick it to the competition - principally the Zune HD - by introducing its new products at aggressively lowered prices.

Or it may not. This is speculation and rumour, after all.

A recent blog posting claimed the entry-level 8GB iPod touch will be introduced at $149, a price which would immediately widen the company’s market. 

What if Apple were to do something like it has done with the iPhone and kept a previous generation model (8GB iPhone 3G@$99) around at an incredibly low price?  Sell the iPod Touch 2G without camera, compass, or GPS for $149?  Or less.

The new $150 price point would be revolutionary for people who need Email, light browsing, 70,000 apps, music, movies, photos etc on the go.  It would also make Microsoft's $220 entry level also GPS-less/Camera-less ZuneHD a tough sell. (More on the impact of the $150 iPod touch here.)

Marco.org also postulates the following price points, and warns that the iPod classic will be retired (despite some claims it will be updated to match the rest of Apple’s media player products with the inclusion of its own camera.

- $59: 4 GB Shuffle (no changes)

- $99: 8 GB Nano (minor update, maybe with camera)

- $149: 8 GB Touch (3GS internals, camera)

- $199: 16 GB Touch

- $249: 32 GB Touch

- $349: 64 GB Touch

That it is possible Apple would be able to shave a few dollars off the cost of its iPod touch and iPhone devices is also suggested by a second report on DigiTimes.

The article, “Touch panel IC quotes dropping fast”, relates that the current price of 3.5-inch touch panels have dropped near 50 per cent, from $16-18 one year ago to $9-11 today. Chip prices on the segment have also fallen, to $2 from up to $5 each. The report cites market sources.

If the trend is one in which key component prices are falling, as production efficiencies bring in cost savings on the one hand, while economic woes cause manufacturers to lower prices to stimulate trade, then Apple does have an opportunity to bring in its next-generation iPods at lower prices.

This could be considered by Apple management to be an appropriate reaction to the slow erosion in iPod sales growth, particularly as it cannibalises its own market with the iPhone.

That the opportunity to do this may exist doesn’t necessarily mean Apple - at heart a premium priced brand - will take the chance. But with Microsoft’s Zune HD set to cost $219 (16GB) when they debut later this month, reducing prices to eradicate Redmond’s price war threat could make some sense.

We’re in the “wait and see” camp.

Comments (14)

Never happen. The iphone is subsidized by AT&T and the Touch is not. Apple would NEVER release the touch at that price.

Name your source.

..hello - I think we did a pretty good job linking to the sources here, so perhaps try clicking the link to see it?

And yes, there is a dose of - admitted - speculation here, but we did note our sources.

Seems an odd question, that's all.

It's past time for Apple to cut to the chase: Video, GPS, AND 3G on the Touch. At least on the Touch Deluxe. Make it $400 and give me my dream iPod.

You want 3G on an iPod touch? Um... you just described an iPhone.

Um, no he didn't, he/she described a Kindle like data service.

and for a data service to be available there has to be a cellular radio in the device, which will be the only thing differentiating the ipod touch from the iphone after the ipod touch receives its new hardware.
so in fact, he did describe an iphone.

and besides that, att would never allow millions of ipods to further cripple it's weak network free of charge.

Well let's think about it....... Yes, the iPhone is subsidized, but the value of the device, being older, went down. When the new iPod touches come out, the value of the last gen touches would be significantly lower. This would allow apple (if they wanted to) to continue to sell the devices at a lower price. I wouldn't get one, but it would be cool of apple to offer an iPod touch for $149. Imagine all the people you know who don't currently have one getting one. We could all play together. Apple could own us all ;).

Xanadeath

Shoot, I should have waited until a price was lower - but I didn't thinking that Apple never has price cuts or deals so I bought right away... Silly me! Wonder what will happen.

… has Apple undercut competitors on price? And frankly, if you were in the business of making a profit, why would *you* sell your Leading Brand for less than the BrandX, suggesting that their product is superior on features?

I'd be happy to see this — I'm about ready for my 6th iPod — but seems like this non-reality-based “idea” has a snowball's chance.

Funny, why are you guys at 9to5Mac always plugging the zune.

Are you guys paid for every hit by MS when you moot their player?

quit trolling

The new IPod Touch models are expected to do the following:
Double the memory
video/Still camera
Compass
GPS
All for the same price.

I've been wondering if they will really add all of that without a price increase, but price increases are risky.

Selling the current 8GB touch for $150 could be the perfect cover. Possible price points:

old 8GB = $150
new 16GB = $250
new 32GB = $350
new 64GB = $450

The old model would open the touch up to new users who have been scared off by the price. The current users will still upgrade and apple make a lot more profit per unit.

We'll see tomorrow.

Don't forget that it'll also likely have the same processor as the 3GS.

Oh c'mon. Revolutionary? Sometimes you can get them on Amazon for less that $190.

If <$40 is that big a deal to people than they probably are worried about rent, not purchasing an iPod.

$40 less for a year old device is no bargain.