The Apple (NASDAQ:AAPL) iPod is a rather peculiar legacy product that seems to be retained mostly in order to serve as a tempting, low-cost introduction to the Apple ecosystem for music enthusiasts who have not yet joined the ranks of iPhone and iPad users. However, Apple’s price updated yesterday, rationalizing the price structure of the various sized iPods, and its introduction of new features for the latest generation of the iPod Touch, indicates that the music player is likely to remain in the Cupertino company’s product range for several more years at least.
Under the new system, there are three separate iPod Touch models, storing 16 gigabytes, 32 GB, and 64 GB respectively. The smallest Touch now includes a camera on the reverse side, bringing it closer to a strange “imitation iPhone” with no telecommunications capability but many of the other features. The new 16 GB iPod is already ready for shipping within 24 hours of ordering, just like the larger models.
More intriguing than the addition of a rear camera to the cheapest model, however, is the new pricing scheme. The lowest priced iPod now costs $199 and the prices of the additional models are set at $50 increments, at $249 and $299 respectively. This is a much more rationalized approach than the previous, irregular increments of $70 and $100, and also represent a departure in the direction of lower overall prices.
Though the camera is not absolutely outstanding, CNet reports that it takes 5 megapixel pictures and shoots 1080p video, making it sufficient for casual photography and filming. The new iPod is difficult to modify or repair, iFixit notes, with most components soldered together in a line and the case itself secured by clips and glue, in an apparent effort to exclude nosy owners.
The decision to continue making the iPod is an interesting one on Apple’s part. The music players generate a minuscule quantity of profit compared to such “hot products” as the iPhone and iPad, or even average sellers like the Mac. Furthermore, most of the player’s functions can be emulated by the iPhone, making it redundant for smartphone owners. Analysts have been predicting the demise of the iPod for years, yet it remains stubbornly part of Apple’s repertoire.
The fact that there is continuing demand for music players may indicate one of the Cupertino firm’s motivations, however. While the iPod continues to be available, people are likely to turn to this established brand when they want a music player. Without the iPod, there would be room for a competitor to cash in on that demand, and perhaps lure customers away from Apple (AAPL) entirely. As it stands, the iPod may be a small but indispensable link in Apple’s quest for market strength and dominance.
