Apple today did something that's quite common in the tech industry: They updated existing products, in this case the iPhone and the iPod touch, with increased storage capacity. Normally, this would be a win-win. But there's something important missing from today's announcement that casts a bit of a pall over things. Here are the pros and cons of the new iPhone and iPod touch models.
What happened? Apple today announced new iPhone and iPod touch models, both with more storage capacity than the previous models. On the iPhone front, Apple added a 16 GB model for $499 (in addition to the existing 8 GB model, which costs $399). For the touch, a new 32 GB model (also $499) was added, bolstering the existing line, which includes an 8 GB version ($299) and a 16 GB version ($399).
The Good. More storage is always welcome. Indeed, in my review of the iPod touch, one of primary complaints of the device was that, while the iPod touch is nearly perfect as a portable video device, it's limited storage capacity was a problem: You just can't fit that many videos in 16 GB of storage, especially if you use the Apple-recommended H.264 format.
The Bad. Generally, when Apple (or any other company) raises storage on its portable devices, it basically just replaces the existing models with new versions that have twice the storage of the models they replace. This effectively lowers prices. But that's not what happened here. Instead, Apple simply added new models to each product line, each of which carries a premium $499 price tag. They didn't lower the prices of the existing models at all. So rather than, say, make a 32 GB iPod touch $499 and turn the low-end touch into a 16 GB model at $299, Apple just added expensive new models and kept prices at the same level.
So. Does the absence of an actual price cut make these products any less enticing? Not entirely. In fact, I think it's more important at this time that the iPod touch be given a more acceptable range of storage options than get a lower price. This, along with the recent 1.1.3 firmware update, may trigger a revision of the 3/5 score I gave the iPod touch in my review late last year.
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I was glad for the increased storage, but here in Canada, that player is $519. I've spent time with the Touch, but justifying that much is not an option right now.
Also, with the SDK right around the corner, the chances of getting caught with another $20 charge to update or a chance of v2.0 of the Touch or iPhone is a bit too great for me.
I'm glad there's a 32GB Touch now--all that was holding me off on buying one was the limited storage capacity of the 16GB Touch...
But NOW all that's holding me off is that ridiculous price. Geez, I can get a full-featured laptop for less than that. They really need to get these around the $350 price range or I think the Zune is going to keep attracting iPod owners who want to upgrade, but can't afford the insane prices.
Since Paul won't report it -
Canalys reported on both U.S. and Q4 2007 mobile phone marketshare numbers today and listed Apple's iPhone as #3 (6.5%) in smart phone marketshare worldwide despite being only available in a few countries. Apple trailed Nokia (52.9%) and RIM (11.4%) who were #1 and #2, respectively, in the worldwide market.
Meanwhile, Canalys estimates that Apple at #2 in U.S. marketshare with 28%, behind RIM (41%). This put the iPhone ahead of both Palm (9%) and all Windows Mobile device vendors combined (21%).
See data at http://www.canalys.com/pr/2008/r2008021.htm
@ cesjr
And this has exactly what to do with the new prices for the iphone/ipod touch?
I think this is simply a reaction to the adverse PR they received for the touch software upgrade.
Imagine all the folk who bought a 16GB Touch at Xmas, only to find that it had doubled in storage for the same price a month later? People were in uproar over a measly $20 for a pretty decent upgrade..
This way, nobody gets burned. So thanks to all the moaners from last month
I'm more interested to know when the heck the 3G version is coming? I mean don't get me wrong, the 16GB model is nice and all but I'd take 3G over that. Looks like I'm still holding out...
Paul, or anyone, what else do you get besides more storage? Is there any other difference? I have ATT and my contract expired and I have a $320 Apple gift card. I like my Treo 650, but would consider an iPhone [so that I can be cool too], but like the ability to store and view Word and Excel docs, like Doc-to-go. Amy more news?
Sorry for the stupid question gang. I did not read that the "updated an existing product" as I was trying to read and get the kids ready for bed. Apple had limited info at the web store, but it looks like just more storage and another minor software update. Bummer! With all due respect, the PIM sucks. I am still considering another Treo or Win Mobile device. Is the Blackberry and Q a real Win Mobile device or some kind of hybrid?
Paul!!!
When are you going to fix these f-ing pingback errors?
Believe it or not I actually enjoy what you have to say, hell I even like weedmonk's occasional rant, but these pingback errors are making the site unreadable.
joe
