macnn/ipodnn
09/10/2008, 10:35am, EDT
Wednesday, September 10th
iPod touch prices remain too high: AmTech
Although Apple is headed in the right direction, it still hasn't gone far enough in pricing for the iPod touch, claims analyst Shaw Wu of American Technology Research. The new 8, 16 and 32GB models have dropped in cost compared to their predecessors, by as much as $100 in the case of the larger players, but Wu argues that this is still too high, mainly in relation to the terrible economic environment. The other major concern is the iPhone 3G, which is comparatively cheap next to the Touch, even if the former is tied to monthly carrier fees.
Wu notes, however, that supply chain checks indicate Apple is continuing with normal build plans. The analyst also suggests that while the fourth-generation Nano is a "moderate" refresh, he is impressed with the accelerometer and new colors, as well as a $50 price cut for new capacities, which he suggests will make the player an attractive proposition for holiday shoppers.
AmTech is continuing to forecast sales of 11 million iPods for Apple's September quarter, and 24 million in the December quarter.
Filed under: iPod, iPhone, Investor, Apple
Other story tags: iPod touch, iPhone 3G, iPod nano
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Agreed.
No storage increase and a modest price drop do not a winning product make. Guess I'll have to wait for version 3.
Price too high?
Compared to what exactly? Comparing it to the iPhone is rathe ignorant. I am sure Apple could drop Touch prices another $50 but this gives them room for holiday promotions, etc.
While the new Touch may not be faster with larger capacity, it has a number of hardware additions. This is not much different than Apple releasing a new MacBook at the same price as its predecessor. Generally there again only modest changes are made but people don't complain that they should be cheaper. You don't usually get more for A LOT less.
You know
The thing is, with 160 million iPods sold to date (or whatever the ridiculous number was), they don't have to release an innovative advancement each upgrade cycle that would make EVERY iPod owner want to ditch their previous one for the next; there are enough people who are into their 3rd, 4th, etc. year of their iPods and are more than willing to shell out the dough for such modest updates as these. Apple will sell enough of these iPods, I guarantee you.
re: Agreed
Really? Not a winning product? Have you seen what kind of sales the iPod makes? It may not be "winning" in your eyes, but it's definitely "winning" as far as other players are concerned. That said, I think you (and many other people) need to ask themselves "what exactly am I going to use feature X or Y for if I have it." I had an 8 Gig iPhone and there was plenty of space for a nice large subset of my 13,000 song iTunes collection. I recently got a 3G iPhone (not out of necessity, but because it was actually cheaper to sell my original iPhone and get the 3G phone) with 16 Gigs and I have to consciously put things on it just to fill it up. How you can possibly say that 32 Gigs isn't enough is beyond me. Maybe you've got a special situation, but I can assure you that most people simply have no real need for that type of space. I'm not saying that Apple shouldn't push the capacities up if its practical, I'm just saying that I really have a hard time believing that the current storage options aren't feasible for 99.9% of the market.
Yeah, yeah . . .
And every time Apple drops its price on ANY item, the stock tanks! Keep it up Wu-Wu Boy.@Monstermind: You're welcome to wait until Version 50. Clearly, this model is not for you; but then again, I wonder if ANY Apple product i. That is, too expensive for your modest budget?
Nano
The advantage of the new Nano is not the accelerometer. It's the fact that is has a bigger screen for pictures and video.
From the pictures the oval shape looks kinda strange, but I suspect that like many of Apple's products in person it looks awesome.
I agree
I agree the prices are too high. The iTouch is a great device and I want one but I have a hard time spending more than $200 on it. And yes, I do compare it to the iPhone prices even though I shouldn't.
Re: I agree
So, Apple should drop prices just because some people can not afford them. I can't afford a Mac Pro; does that mean Apple is obligated to lower the price to $100?
Hmm... Apple's success seems to indicate they know how to price their products.
WU Hooo!
"...but Wu argues that this is still too high, mainly in relation to the terrible economic environment..."
Wow, this sounds a lot like what I said yesterday, only to get flamed by a few barely able to drag their knuckles off the ground long enough to bash something out on a keyboard.
Bottom line, it's not about absolute price, it's about price relative to prevailing economic conditions. Relative over-pricing is an inflationary force that ultimately threatens jobs (but not Jobs!!!).
Blah
Why are we even entertaining these stupid firms?