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Analyst: iPod touch at end of product life cycle?

updated 06:01 pm EDT, Wed October 24, 2012

iPad mini and iPhone taking over for media player

Apple's latest iPod touch, introduced alongside the iPhone 5, represents a significant overhaul of the previous generation, however KGI Securities analyst Ming-Chi Kuo believes the media player is at the end of its product life cycle. Sales of the flagship iPod are said to have already been affected by the iPhone, and are expected to be further diminished by the new iPad mini.

The cheapest iPod touch costs $299, compared to $329 for the iPad mini, while the iPhone 5 can be purchased for $199 due to carrier subsidization. The iPhone 4S is available for even less, and the iPhone 4 can be obtained for free.

Kuo suggests the sales impact from the iPad mini and iPhones has led Apple to place the Touch in the "final stage" of its life cycle, according to details of the research note posted by AppleInsider. The device is unlikely to disappear, however the company is not expected to make significant investments in its ongoing development.

iPod sales growth has slowed as the popularity of smartphones, wether the iPhone or competing platforms, has continued to surge. The iPod touch still serves a niche, providing access to the App Store and serving as a handheld game console that competes with Sony's Vita and Nintendo's 3DS.




by MacNN Staff

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Comments

  1. aardman

    Fresh-Faced Recruit

    Joined: 11-18-09

    The iPod touch would be fine if Apple didn't gimp its cpu and cameras. If Apple gave it cellular data and true GPS then it would be a totally revived product.

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Originally Posted by aardmanView Post

    The iPod touch would be fine if Apple didn't gimp its cpu and cameras. If Apple gave it cellular data and true GPS then it would be [S]a totally revived product[/S] an iPhone.



    Yep.

  1. Wiskedjak

    Posting Junkie

    Joined: 06-04-02

    Originally Posted by aardmanView Post

    The iPod touch would be fine if Apple didn't gimp its cpu and cameras. If Apple gave it cellular data and true GPS then it would be a totally revived product.


    I'd like to see them give it cellular data in the same way that the iPad has cellular data - i.e. no voice. I use only an iPad data plan for my mobile needs, saving a tonne of cash by not having an expensive voice plan.

  1. lamewing

    Dedicated MacNNer

    Joined: 08-04-04

    Originally Posted by WiskedjakView Post

    [QUOTE=aardman;4198001]The iPod touch would be fine if Apple didn't gimp its cpu and cameras. If Apple gave it cellular data and true GPS then it would be a totally revived product.


    I'd like to see them give it cellular data in the same way that the iPad has cellular data - i.e. no voice. I use only an iPad data plan for my mobile needs, saving a tonne of cash by not having an expensive voice plan.[/quote]

    Agreed. I am selling my iPhone 4 and upgrading to an iPad Mini. I hardly use actual minutes. 95% of my iPhone usage is internet and texting. I have iMessage and Google Voice for texting and Skype and Facetime for those few calls I need to make. So it is a little bigger, I can carry it in my old Army map case (repurposed man bag).

    If Apple had added cellular to the iPod Touch I would use it instead of the iPad Mini. I guess they are afraid of cannibalization of iPhone sales....right, like that many people would do this. Using data only is a rather fringe idea. I would think it would be a fantastic way to get kids into using iOS devices and then later into iPhones....basically a gateway device.

  1. cgc

    Professional Poster

    Joined: 03-25-03

    Sure, you can buy an iPhone 5 for $199 or get an iPhone 4 for free if you sign into a contract but that contract will cost you over $2000 over the next two years. An iPod Touch costs $299 with no recurring charges... Thanks for skewing the article to support your point-of-view...

  1. mytdave

    Fresh-Faced Recruit

    Joined: 08-16-00

    Not. Anyone who believes the iPod Touch is at EOL clearly doesn't have kids.

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