Is it the end of the road for the first-generation iPod Touch? An analyst from Lehman Brothers seems to think so, according to Apple Insider. Speculation began as both Apple.com and Best Buy seem to be scaling back on their respective supplies of the device. Apple’s shortage is somewhat easy to explain away, as the company is offering a free 8GB iPod Touch with the purchase of certain Mac computers as part of a back to school promotion (Back to school?? School just ended!) but Best Buy has no such promotion, yet “has seen reduced supplies of 16GB models at its own locations.”
The analyst, Ben Reitzes, says in a recent report to clients sent out on Tuesday…
"We believe Apple will need to reposition the iPod touch product by September now that the iPhone acquisition price is lower… We expect the iPod touch to experience significant cannibalization from lower-priced iPhones."
If a new version comes out in September, that’s fine with me. But reasoning that a $199 iPhone is going to kill off a $299 iPod Touch doesn’t take into account that the iPod Touch doesn’t require a two-year service agreement of at least $70 per month. If anything, I’d guess that we’d see price reductions on the various iPod Touch models, but all the cries of “Why would I buy an iPod Touch when I can just get a new iPhone for less?” sound fine now but might not be as loud once the new iPhone actually ships.
via Ars Technica