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You are here: MacNN Forums > Hardware - Troubleshooting and Discussion > iPhone, iPad & iPod > iPhone without the Phone = new iPod ?

iPhone without the Phone = new iPod ?
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Gee4orce
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Jan 23, 2007, 06:43 AM
 
It stikes me that a lot of people are mistakenly thinking that iPhone is the new iPod. That, in the future, if you want an iPod, it'll come with phone functionality and you'll have to sign up for a contract. At least, that's the impression you get when you read the press reaction to the iPhone.

The iPhone is NOT the new iPod. It's a new product, a new category. The new iPod is imminent, and will include the multi-touch full screen interface.

My reasoning is there's no way that Apple are going to drop high capacity iPods from the line. People with 60 or 80 Gig iPods aren't going to settle for 4 or 8 Gb - unless it's a supplemental device. There's also no way that Apple are going to continue shipping scroll wheel, small screen iPods when they've pushed all this money into RnD for multi-touch.

The iPod is way overdue for an overhaul too, so I expect to see the new iPod sooner rather than later.

The only thing I'm unsure of is whether or not the iPod will have the iPhone's WiFi capability. This seems like a good move to counter the only USP the Zune has over the iPod at the moment. The ability to browse the web via the new iPod - and run widgets - would be awesome too. You can even imagine iChat and email running on it - but then that leave the only USP for the iPhone as GSM voice capability.

Will Apple pack this much functionality into the new iPod ? Or would this squash the iPhone too much ? Maybe there's room for 3 models - iPod, iPod + Wifi, iPod + WiFi + GMS (iPhone) ?
     
icruise
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Jan 23, 2007, 09:08 AM
 
Originally Posted by Gee4orce View Post
It stikes me that a lot of people are mistakenly thinking that iPhone is the new iPod. That, in the future, if you want an iPod, it'll come with phone functionality and you'll have to sign up for a contract. At least, that's the impression you get when you read the press reaction to the iPhone.
Frankly, I haven't heard a single person say that. Everyone (including me) seems to think that the iPhone is a glimpse of what's to come in the iPod line. The real question is whether Apple will release iPods using this new form factor in the near future. I'm almost positive that they will release an updated iPod of some kind before the iPhone is released in June. But what will it look like?

First is the issue of cost. They need to keep the normal iPods more or less at the same price point as they are now, and that may not be possible yet with the touch screen. Plus, if they made it a widescreen/touchscreen model, I think it would take a lot of the focus away from the iPhone, so I wouldn't be surprised if we saw at least one more round of "iPod with video" style iPods before they changed over.
     
Gee4orce  (op)
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Jan 23, 2007, 10:24 AM
 
Ok - maybe I was exaggerating - but a lot of the non-Apple specific press seem to be at best forgetting that the iPhone ≠ the iPod.

I can't see Apple retaining the current iPod form factor for yet another iteration. We already have the 5.5G iPod - I can't see a 5.75 version. I agree with the cost limitations - I have a feeling that the price might be about to go UP $50 or $100 with the widescreen touchPod. I think they'll justify this by saying that it's a fullblown media player, with a gorgeous screen and massive capacity. The Nano will morph into the music only iPod, and the iPhone as the do everything device.

the iPhone price sets a celing for what the can charge for the iPod. I think the top-of the range iPod will be priced the same as the bottom of the range iPhone. The current iPod are $250 and $350 - I can see the 6G ipod being priced at $299 and $399.
     
icruise
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Jan 23, 2007, 10:48 AM
 
Originally Posted by Gee4orce View Post
the iPhone price sets a celing for what the can charge for the iPod. I think the top-of the range iPod will be priced the same as the bottom of the range iPhone. The current iPod are $250 and $350 - I can see the 6G ipod being priced at $299 and $399.
The low end iPhone is $499, however. I'm really not sure if they can fit the touch screen and all into a $299 device, but it would be great if they could.
     
Tiresias
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Jan 23, 2007, 11:04 AM
 
This is something I tried to bring up when the iPhone came out.

I think the next iPods will be white iPhones with iPod GB capacity but without the communications apps and sans cameras.

If so, they'll rock and I'll be first in line for one.
     
C.A.T.S. CEO
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Jan 23, 2007, 06:58 PM
 
I saw a report on Gizmo about the iPhone. it said that the $500 iPhone only costs ~$250 to make ( which means that Apple is making ~50% gross profit, which in my opinion is just plain wrong). so a touch screen iPod should not cost more than the current iPods
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Gossamer
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Jan 23, 2007, 07:26 PM
 
Originally Posted by C.A.T.S. CEO View Post
I saw a report on Gizmo about the iPhone. it said that the $500 iPhone only costs ~$250 to make ( which means that Apple is making ~50% gross profit, which in my opinion is just plain wrong). so a touch screen iPod should not cost more than the current iPods
Manufacturing and estimated costs are $250. Of course it's just an estimate, and no one knows how much it cost to spend the last three years developing this revolutionary new technology. Either way, they're a business out to make a profit. How is it wrong?
( Last edited by Gossamer; Jan 24, 2007 at 01:26 AM. Reason: grammar)
     
abbaZaba
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Jan 23, 2007, 08:00 PM
 
Originally Posted by C.A.T.S. CEO View Post
I saw a report on Gizmo about the iPhone. it said that the $500 iPhone only costs ~$250 to make ( which means that Apple is making ~50% gross profit, which in my opinion is just plain wrong). so a touch screen iPod should not cost more than the current iPods
yes that is what it costs to manufacture an iPhone but they spent years paying people to develop the technology. that alone would raise the price. maybe you haven't noticed but EVERY NEW PRODUCT starts out at a fairly high price then gradually lowers. sheesh.
     
C.A.T.S. CEO
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Jan 23, 2007, 09:47 PM
 
Originally Posted by Gossamer View Post
Manufacturing and estimated costs are $250. Of course it's just an estimate, and know one knows how much it cost to spend the last three years developing this revolutionary new technology. Either way, they're a business out to make a profit. How is it wrong?
Originally Posted by abbaZaba View Post
yes that is what it costs to manufacture an iPhone but they spent years paying people to develop the technology. that alone would raise the price. maybe you haven't noticed but EVERY NEW PRODUCT starts out at a fairly high price then gradually lowers. sheesh.
I see what you mean.

abbaZaba: you don't have to be so rude about it....
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dpicardi
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Feb 2, 2007, 07:49 PM
 
50% gross margin is nothing. Most (good) software companies have 80-90% gross margin.

Cisco, another hardware company, has 70% margins.

It's all about supply and demand. I think a video ipod in an iphone form factor would absolutely clean up in the market place. I would be the first to dump my 80GB ipod on ebay to pick up a widescreen ipod with similar storage.

Apple's biggest challenge will be battery life.

If they can get it to crank out 4 (real) hours of video on a single charge they'll have a winner.
     
C.A.T.S. CEO
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Feb 2, 2007, 08:43 PM
 
Originally Posted by dpicardi View Post
50% gross margin is nothing. Most (good) software companies have 80-90% gross margin.

Cisco, another hardware company, has 70% margins.

It's all about supply and demand. I think a video ipod in an iphone form factor would absolutely clean up in the market place. I would be the first to dump my 80GB ipod on ebay to pick up a widescreen ipod with similar storage.

Apple's biggest challenge will be battery life.

If they can get it to crank out 4 (real) hours of video on a single charge they'll have a winner.
I meant that there're making 50% gross margin off the PRODUCT. paying $250 for making the iPhone and then selling it for $500
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Sub
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Feb 2, 2007, 09:07 PM
 
Originally Posted by dpicardi View Post
Cisco, another hardware company, has 70% margins.
Don't talk sh*t about cisco...

     
dbranham
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Feb 4, 2007, 01:28 AM
 
Let's not forget Apple's scheduled "special event" set to take place on Tuesday, February 20th.
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brokenjago
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Feb 4, 2007, 03:10 AM
 
Rumored Special event. I've heard no official word from Apple.
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mitchell_pgh
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Feb 4, 2007, 04:03 AM
 
I think and updated iPod is only natural. I can't wait to see what it has in store. I don't see Apple just sitting around with the old form factor.
     
lavar78
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Feb 4, 2007, 09:23 AM
 
I can see a real dilemma in my future. While I'm one of those high-capacity guys, an 8-gig flash-based iPhone is very tempting. I think I'm going to move to an iPhone and keep my 5.5G iPod as a backup, but I'm sure they'll do something to make me want the new iPod as well.

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dbranham
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Feb 4, 2007, 03:00 PM
 
Yeah, it would be nice if they could fit a hard-drive into the iPhone form factor. But, I'm sure that would be impossible, unless they made it much larger. One of the great things about flash is that it allows you to be active with it, e.g., running, without damaging the technology. But, the iPhone won't really be used for running very often...at least, not as often as a nano or shuffle. Meanwhile, video lovers are going to want much more capacity. Oh well, we can't necessarily have everything we want, I suppose.
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macgeek2005
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Feb 5, 2007, 03:37 PM
 
I've got my hand on my wallet. The minute they release a new hard drive based ipod with the iphone's form, it's mine.

I'm thinking something like this:

100GB widescreen iPod. Functions exactly like the "iPod" part of the iPhone, plus runs OS X with any apps that don't require internet. Built in bluetooth for wireless connectivity to your computer.

If they did that, at a price point of $599, i'd buy it, for sure. Of course they'd have smaller hard drives sizes for cheaper, but i'd go with the best.
     
Gee4orce  (op)
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Feb 5, 2007, 03:49 PM
 
I'd think it more likely they'd drop the Bluetooth and keep the WiFi - they don't want the Zune to even have the slightest perceived advantage. Bluetooth isn't really necessary in an iPod, but Wifi could open up the possibility of all the internet functionality on the iPhone being available on the iPod

I think an iPhone style iPod is a sure bet - the question is what do they leave out (apart from the phone bit) ?
     
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Feb 5, 2007, 03:51 PM
 
I'm not so sure Apple will be releasing this rumored widescreen/multi-touch iPod before the iPhone is on the market. Releasing that iPod would surely cannibalize many of the iPhone's sales. There are plenty of people on the hook for the iPhone right now who would get the iPod instead, and wait for a later version of the iPhone. If Apple released the new iPod before the iPhone hit the shelves, lots of people who were going to get an iPhone would go for the iPod instead.

I predict a newly designed iPod just before the holiday season.
     
macgeek2005
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Feb 5, 2007, 03:59 PM
 
Originally Posted by ::maroma:: View Post
I'm not so sure Apple will be releasing this rumored widescreen/multi-touch iPod before the iPhone is on the market. Releasing that iPod would surely cannibalize many of the iPhone's sales. There are plenty of people on the hook for the iPhone right now who would get the iPod instead, and wait for a later version of the iPhone. If Apple released the new iPod before the iPhone hit the shelves, lots of people who were going to get an iPhone would go for the iPod instead.

I predict a newly designed iPod just before the holiday season.
That would suck. I want my widescreen ipod already!!!!
     
Gee4orce  (op)
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Feb 6, 2007, 05:13 AM
 
So do most other people ! The 5G iPod is long in the tooth now. If they launch the touch screen iPod before the iPhone, it won't damage sales of the iPhone because the iPhone is a phone first, an iPod second. Lots of people will want the phone functionality over the cool iPod features. Lots of people won't see the benefit of multitouch on an iPod at all.

The grey are for me is what other aspects of the iPhone will move over to the iPod, and which will remain unique iPhone features ?
     
vri2i
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Feb 6, 2007, 12:55 PM
 
Remember the prices that have been released for the iPhone are with a 2 year contract from Cingular.
Also everything I have read so far states that Cingular will be the Only place the iPhone will be available for purchase.
Cingular typically discounts prices 40% for a new 2 year contract. If you don't want to sign up for Cingular's service expect to pay about 40% More for an iPhone.
Think anyone will want the new iPhone for iPod only features at $700 ?

So I don't think introducing a widescreen iPod before June would hurt iPhone sales.
In fact I expect Apple will introduce one at the upcoming Developer's Conference

I wouldn't be surprised if they keep the current line and add a wide-touchscreen version for about $100 more. The only catch will be they will have reduced storage capability like the iPhone.
There are always trade offs...
     
macgeek2005
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Feb 6, 2007, 01:38 PM
 
Originally Posted by vri2i View Post
Remember the prices that have been released for the iPhone are with a 2 year contract from Cingular.
Also everything I have read so far states that Cingular will be the Only place the iPhone will be available for purchase.
Cingular typically discounts prices 40% for a new 2 year contract. If you don't want to sign up for Cingular's service expect to pay about 40% More for an iPhone.
Think anyone will want the new iPhone for iPod only features at $700 ?

So I don't think introducing a widescreen iPod before June would hurt iPhone sales.
In fact I expect Apple will introduce one at the upcoming Developer's Conference

I wouldn't be surprised if they keep the current line and add a wide-touchscreen version for about $100 more. The only catch will be they will have reduced storage capability like the iPhone.
There are always trade offs...


Why would they release a wide-touchscreen ipod for $100 more, with less storage than the regular ipods????
     
vri2i
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Feb 6, 2007, 08:48 PM
 
Because people will buy them
     
macgeek2005
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Feb 6, 2007, 10:54 PM
 
Originally Posted by vri2i View Post
Because people will buy them
I won't buy them! I need at least 80GB to hold all my movies!
     
dbranham
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Feb 8, 2007, 11:07 PM
 
Apple should partner up w/ M-$oft on this thing so they can come up with the best possible device: ZunePod!

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::maroma::
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Feb 9, 2007, 04:40 PM
 
Originally Posted by dbranham View Post
Apple should partner up w/ M-$oft on this thing so they can come up with the best possible device: ZunePod!

Sweet Jesus no! Then I'd have to become a Linux fanboy.
     
   
 
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