New iPhone and iPod touch, same price structure
Reflecting the availability and the falling costs of memory chips, Apple (AAPL) today introduced a 16-GB iPhone and a 32-GB iPod touch. The lower costs, however, were not passed on to consumers.
“For some users, there’s never enough memory,” said Apple VP Greg Joswiak in a press release issued this morning. “Now people can enjoy even more of their music, photos and videos on the most revolutionary mobile phone and best Wi-Fi mobile device in the world.”
The new devices join the 8-GB iPhone (a 4-GB model was discontinued last year) and 8- and 16- GB iPod touch models. Some Apple watchers had predicted that the company would sell the new models at the old prices and lower prices on the existing models to drive up sales. It was not to be. The price structure stands as follows:
- 16-GB iPhone: $499
- 8-GB iPhone: $399
- 32-GB iPod touch: $499
- 16-GB iPod touch: $399
- 8-GB iPod touch: $299
The 32-GB iPod touch is available immediately worldwide. The 16-GB iPhone is available through Apple Stores and AT&T in the United States. No word yet on its availability overseas.
Some one said that iPhone has a weak demand, but China Mobile said that more than 400,000 iPhone are running in its network. I think iPhone has a strong demand by the world, the important thing is that Apple should chang its exclusive method. Here is my letter to Jobs:
Steve Jobs, Apple CEO
1 Infinite Loop
Cupertino, Ca 95014
FAX: (408) 974-2483
To Steve Jobs:
As a real Apple fan, I’d like to talk something to you.
I love Apple, especially iPhone. I invest half my asset in your company, but I lost more than one million in just twenty days. I wait day and night to get an iPhone in Canada or China, but I can’t, because of iPhone is not available in the two countries. I just got an iPod Touch.
I don’t think your sales method is in a good way. China is the number one cell phone market in the world; Apple doesn’t pay much more attention to it. In my opinion, the first iPhone should be sold in China, rather than US, if you did in this way, I am sure till today, iPhone should have sold 20 million, rather than 4 million.
I am worry about your speed of prompting the iPhone sales in China. If it was too late, the market would be controlled by fake iPhones, or some phones looking like iPhone. If it happened, Apple will lose the Chinese market permanently. Chinese people like luxury goods; they have the habit to show their status. In my opinion, you don’t need to make a deal with China mobile. You just need to put the iPhone in Chinese market at $700 per unit. I am sure you will sell 40 million in one year, and I think because of the success of the iPhone in China, the Mac computer will have a big victory in China. I am a businessman, and I’d like to help you to prompt the iPhone sales in China if you like.
Please don’t limit the iPhone sales, let every one in the world free to get it. And I think because of the iPhone success, Mac will prevail.
I have 3 ipods, 1) Ipod photo had to be replaced under warranty after 2yrs 2) 1 iPod Video had massive screen issues after a year and is in repairs under warranty for the 3rd time they just can’t fix it 3) 3rd iPod Video DIED after 6 months and was replaced get this by a refurb. WHAT A PIECE OF WORK APPLE IS. They had their best days and now it will be a hard climb since it is a well established fact that their products are crappy and in a slow economy no parent is going to buy their kids an iPod any more. I think the strategy to sell the iPhone exclusively with one Cell phone provider and AT&T at that was not a wise one. PS: YES, I am pissed I have lost 15K already investing in Apple and will lose more as my options expire worthless. IT is a true story about the iPods my kids also attest to the fact that after 6 months when problems start surfacing with theiPod kids get completely disillusioned with it. I think Apple will be a company that sells to 40+ year old yuppies in the future but HEY there is a lot more of those than KIDS these days SO it could be a good thing LOL.
it’s very simple. decide to buy it or not. after making that decision, shut your mouth.
nice stratergy of introducing an upgrade to the iphone with 3G capability next. pretty sure will be launched in a 2-3 months at $499 with price on current 16 GB version being slashed to $399
Actually, no Todd from LA. Linus Torvalds said the file system was worse in Mac OS X, and he didn’t even bother to qualify it. I’ve coded for Linux, Solaris, BSD, Mac OS X, and Windows and Mac OS X has the easiest file system to deal with in my opinion. Windows is a pain, especially if you’re trying to be backwards compatable.
The funny this is that before Torvalds took a dig at Mac OS X, he actually said that Leopard was a superior operating system. Talk about only hearing what you want to hear…
I give it to you dude Nodack, I am trying to by fan of apple as I can even after losing $15K in their stocks and still holding because I know they are coming back no matter what, but you are still steps ahead “we are not worthy”.
Good comments keep it going hope this media empty head can hear you
OSX harder to program for than windows.
Book it mac loosers. Enjoy the stock when it hits $40
Nodack knows of Palms screen since his last two phones before the iPhone were Palm Treos. The Treo comes with a stylist or stick that you use instead of “touch” to use and to input text you use a querty keyboard instead of “touch”.
The biggest improvement over the Treo is the software which is why Palm isn’t even a contender any more.
Ignoramus, Nodack
Nodack of Mesa AZ wrote ” Already everybody is trying to build a iPhone copy with touch screens.”
Obviously Nodack is not that bright of a person or just plain ignoramus. Palm Treo smart phones are have touch screen yrs before the iPhone came out. Apple copies Palm’s idea and design a slighly better product. Not much innovation from Apple the way I see it.
i knew something else was coming after that mac world conference definitely something was there in the air and know you apple is rolling out 32 gb ipod touch and 16 gb iphone but there is something more in the air to be seen iphone banged up the smart phone industry but i will wait until google gets into cellphone industry with its bidding to buy air wave spectrum from govt and may be apple and google collaborate and make something revolutionary like iphone with 3g capability and gps navigation 5mp camera and maybe because of shrinking price of memory more space for myspace and all other cool stuff
on the new 16g iphone, can I send a photo through a text message?
The new devices join the 8-GB iPhone (a 4-GB model was discontinued last year) in simple terms, apple no longer produces the 4GB iphone as of last year
Apple will wait until the 3G handset to drop pricing. Probably on the iPhone and the iTouch both. My god I have never seen so much crying about updates to their products. Everyone does it. It is not a problem when the person makes the purchase. If they waited too long to update, they would never keep sales going at any normal pace, and people would be complaining about that. Get a grip.
This doesn’t make any sense whatsoever.. so you are at the store and you are looking at the 4GB iPhone and it costs the same as the 16GB iPhone ? Or am I reading it wrong?
Thank goodness Apple doesn’t cater to my cell phone provider to save me the frustration of having outdated hardware every six months.
Apple has managed to develop the third-best selling smartphone in the world, according to a new report from Canalys.
In the U.S., Apple’s actually in second place behind RIM’s BlackBerry, outpacing Palm and, believe it or not, all Windows Mobile devices combined. The company managed fifth place in Europe during the quarter, despite shipping the iPhone in just the U.K., Germany, and France–and starting almost midway through the quarter.
Despite the constant attack on Apple by some in the media, people are buying the iPhone. Why? Because it is the best smart phone out there and those who own them LOVE them.
Already everybody is trying to build a iPhone copy with touch screens. The same companies that said Apple was crazy when they came out with one.
iPods were a stupid risky idea when Apple came out with it. Now look.
Look at the New Dell computer. Does it remind you of anything? That’s right Dell just came out with their version of the iMac.
Imitation is the best form of flattery. The problem with imitation is that you are always a little behind the times waiting for the other guy to come up with a good idea before you can copy it 6 months to a year later.
All sites like this can do is complain about Apple’s prices or try to dig up dirt on whether or not Apple sold so many phones as some expert thinks they should have sold. It’s about time for another story about whether or not Apple is allowed to update their software without getting the hackers consent or not or maybe another one about the guy who went swimming with his iPhone and for some mysterious reason the iPhone quit.
Blaa, blaa, blaa
What John?! Tell that to the guy holding the gun to my head telling me to buy Apple products. j/k.
Apple’s business strategies might not undermine their goals, but it is ethically wrong. Although rabid Apple Fans are annoying, the way Apple inflated their debut prices merely to cash in on the hype is an unsightly slap to consumer rights.
More iPhone analysis here.
Can someone tell me why no camera on the iTouch? Do they want you to buy the iPhone instead?
This is great! I’m going to use my $600 windfall to get an iPhone AND an iPod. And now hopefully the Fed will cut rates so much, that they are actually paying me!
I’m so glad that I just bought a Itouch to have it be upgraded again..gotta love apple!
you know, apple is a BUSINESS. Read the definition of a BUSINESS in any textbook and it WILL say BUSINESSES pursue a goal of getting profits and pleasing it’s shareholders. So what Apple is doing MAY sound ethically wrong but it by no means undermines what their goals are, they know they have a very zealous user base and dedicated to Apple so why should they cut into their potential profits? MS is the same way. If you don’t like the pricing, don’t buy it! Simple as that, no one is holding a gun to your head telling to spend your money and buy a iPhone or you will die.
You Apple apologists/defenders are so ridiculous. It’s fine to like the company and their products but to get in a tizzy anytime anyone dares to question them is really quite hilarious.
James, you’re a newbie, aren’t you? Nothing to say and no idea what regularly goes on here!
Most posters criticize ped for his slant. Mark’s comments were actually gentle and I’m glad to see ped answer. But his answer still doesn’t meet the level of journalist; altho it’s okay for a blogger.
Who are all of these govt and non-profit employees complaining about Apple’s prices. Do any of you own Apple stock? Who said a company is obligated to pass on cost savings from raw materials? Don’t like the prices? Buy something else!
I think Apple will soon drop the 8GB iPhone, settling for the time, on a 16GB version as the standard model. However, if the did that right now, just after the Christmas season, they’d potentially be in for a backlash of customers whining that Apple changed it *just after* they bought it, and therefore they should somehow be entitled to an upgrade. (Ridiculous thinking, but I would anticipate that might have been the reaction of some.)
Get over yourself, Mark. “accusations” haha Get a life.
Upgrading the I-Phone to 3G would be much more welcome. GO APPLE
I am waiting for the price on the Iphone to drop. Apple drop your price under $300 and your sales will sky rocket.
But those falling prices: are they on 8 Gb chips, 16 Gb chips, 32 Gb chips? The price drops are not equally across-the-board. Compare to buying computer RAM. A 4GB module is a lot more than 2 2GB module.
BTW, I’m assuming that Apple uses exactly 8 chips in each due to size. In the 8GB, it has 8 8Gb chips; in the 16GB, it has 8 16Gb chips (instead of 16 8Gb chips); and in the 32GB, it has 8 32Gb chips (instead of 16 16Gb chips or 32 8Gb chips).
So it’s possible that the 8GB versions could be discounted by $25 dollars, and the 16GB versions by $10 dollars. But Apple doesn’t ever do that on iPods/iPhones; if it drops prices, it’s usually at least 15%; at the $299 level, it would be $50, at the $399 level, it would be $50 or $100.
Having said all that, isn’t it the case that the very lack of a price drop a strong indicator that Apple feels customer demand is in sync with supply, and is in sync with its forecast.
God forbid that Apple should lower prices on the iPhone. We’ve already seen one example of the hysteria, moaning, pain, and suffering that move caused. One thing you can bet Apple learned from that episode is that lowering prices is something consumers and critics alike simply will not tolerate. Oh, the humanity!
Let me just add that the 64 Gb chip solution for the MBA is $1000, and others (like Dell, I believe) are charging even more.
And what is the price difference between the Nokia N95 w/o 8GB and the N95 with 8GB?
Since you’re accusing Apple of not passing along savings, can you provide any evidence of how much prices have fallen on 16Gb flash chips or 32 Gb flash chips?
Without doing some legwork to present such evidence, your accusation will certainly come off as just more of the same-old, same-old Apple bashing.
ex ped: See, for example, here: “Japanese electronics group Toshiba posted a worse-than-expected 25 percent drop in quarterly operating profit after tumbling flash memory chip prices ate into margins.
The world’s number-two NAND flash memory chipmaker now expects further microchip price falls in the January-to-March period, as rival Samsung Electronics, in South Korea, shifts to NAND flash in the wake of a supply glut in computer memory…. (link)
One of the great things about not owning an iPhone is the ability to take advantage of higher capacity microSDHC cards as they are released, without having to buy a whole new device. I have an 8GB card right now, and when the 16GB card is available, I’ll upgrade to that. 3G voice and data is pretty nice as well. Apparently all it takes is a gimmicky UI to be called “revolutionary”, not any actual features that people expect from a non-subsidized smartphone.
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Apple really has to begin to consider adding SDHC flash memory card slots to its Ipod Classic and Ipod Touch if it continues to roll out added-capacity units every few months without passing price drops in memory to its consumers. Unless Apple does so quickly, it will slowly begin to disenfranchise its loyal consumer base which has been willing to go along for the ride…until now. Apple is obviously not paying attention to what its competitors are doing, ie Creative Zen 32GB with SDHC capability. And it’s not paying attention to what its consumers are demanding.