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Apple Releases Basic iPod Touch, Possibly Foreshadowing iPhone Strategy

Posted by samzenpus on from the new-and-simple dept.

redletterdave writes "While the new 16 GB iPod Touch released Thursday features the same 4-inch Retina display and dual-core A5 processor as its other variants, the newest, cheapest iPod Touch lacks a rear camera and comes in just two colors black and silver. Apple is reportedly pursuing a similar strategy with the iPhone, as reports from the past several months have pointed to development of a 'low-cost iPhone' with basic features to be sold at a lower price point."

2 of 228 comments (clear)

  1. Obnoxiously... by Samantha+Wright · · Score: 5, Interesting

    The 4th generation 8 GB iPod Touch was also $229, but did have both cameras. They weren't as high-quality as their iPhone counterparts, but still.

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  2. Re:Start giving back some of that money, Apple. by larryjoe · · Score: 5, Interesting

    Another way to look at this is that Apple has always historically pursued maximum profits and market share but adopted different strategies in light of the practicalities of specific markets. As an underdog in the PC market, quality was a differentiator to attract whatever market share was possible, realizing that being a dominant volume seller was not possible. As the dominant vendor in the smartphone space but with eroding market share, Apple is decreasing quality and cost to maintain market share and profit (although not margins). I think this is the more accurate portrayal of Apple, since I doubt they would be willing to blindly sacrifice profit in the name of quality or aesthetics.