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What impact will the new iPhone have on the iPod

There has been a lot of buzz around the web for Apple in the last couple of weeks leading up to the launch of the new 3G iPhone, and not to mention following the launch last Monday. A few writers and bloggers have also raised the question as to the future of the iPod following the new low priced 3G iPhone.What potential impact will the new iPhone have on the iPod, in terms of sales, development and focus? We have tried to look at some of the potential impacts, both positive and negative, that this development might have on the iPod.

First of all the price point on the new 3G iPhone puts it into direct competition with both the iPod Nano and the iPod Touch. The price point might be a bit misleading though as we have to consider the monthly cost of the mobile tariff as well, but the ability to get an 8gb 3G iPhone on a £30 a month tariff for £99 means that it is cheaper than the equivalent iPod Nano. The price point of that tariff is also what a lot of people would be paying anyway for a mobile contract, and now they can combine their phone and music player in one Apple product. Even with the 16gb iPhone it will be lower priced than the equivalent iPod Touch. We are sure that Apple has done extensive research on the cannibalization effect of the new iPhone on their range of iPods and come to the conclusion that overall it gives them a better profit margin. This can work both ways as far as us seeing a drop in price for the iPod Nano and the iPod Touch, as Apple might actually be interested in seeing as many as possible of us switching over to the iPhone. It will be interesting to see what happens with the price of the iPod in the next couple of months, which should give us a better indication as to Apple’s plans for the iPod going forward.

There is no doubt that the iPhone and some of the other projects like the application store has had a lot of focus from Apple lately, perhaps on the cost of the iPod. Hopefully with these areas now covered off the developers will be back looking into how they can further develop the iPods, and hopefully we might see some of our iPod Touch wishes come true in the next 6 months or so. Should we make a bold prediction and say that Apple will come out with an improved iPod in time for the build up to Christmas? It would not surprise us, but it probably will not be a revolutionizing new iPod. Perhaps we can hope for more memory and perhaps some additional features.

We are very interested in hearing your view about this as well.

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Filed in: Apple iPod, Lead Story

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