Re: iPhone vs Wi-Fi iPod
[quote author=“SNIPUS”]But a lot of people do not want a smart phone. They want a mobile phone for emergencies only and the iPhone is overkill from a monthly subscription perspective. Now watching a movie on a 6G iPod might be nice but I would not shell out 400 bucks for the privilege touch screen or not. But WiFi and surfing the net would do it for me.
I think the 6G iPod with OS X, Touchscreen, widescreen will sell for the same price as the iPod today. The same price, and would replace the iPod video completely. Maybe this explains the huge hit in margins that Apple is predicting? I know I would be shocked at a $350 price point for the high end OSX iPod. In other words, a proven and fairly large customer base we will get the OSX/MultiTouch for free!!
Why would Apple take the hit in margins this would entail?
1. OS X and MultiTouch unit volume. That is Apple’s strategic ace and the quicker they get to OS X everywhere the better. The more units the more Apple can invest in their single code base OS X to benefit their entire product line from iPods to Mac Pros.
2. OS X Apps Licensing Fee leverage. If Apple wants maximum leverage for the development of OS X MultiTouch apps such as games, once they release the SDK, they will want huge unit volume. Apple may even start charging licensing fees ala Nintendo, xBox, Playstation. Again for that they need unit volume with the OS X platform.
3. Corner the market for Balda’s Touchscreen. Just like Apple cornered the market for 1 inch harddrives when they launched the iPod mini (tying the hands of Creative and others for months), and almost cornered the Flash drive market when they launched the iPod nano, Apple can try to corner the market for Balda’s touchscreen technology.
[quote author=“SNIPUS”]In other words I do not think the Wi Fi ipod would cannibalize iPhone sales. But of course you could say if Apple does not release the iPod with Wi Fi they will sell more iPhones and that is right. But they would be selling to people who will opt out of any carrier contract as fast as possible as soon as it is activated. Somehow I think Apple knows this and SJ and company have so much pride that I cannot imagine they will not want to WOW the world once again by introducing the best product they can make.
I think the price point for the widescreen iPod will amaze us. Also, once Apple starts shipping games and new apps for the iPhone and the OS X iPod we will be even more amazed with both. And don’t underestimate the power of the peripheral markets to help sell OS X iPods even without wifi.
Remember Apple used two small motherboards for the iPhone. One with the CPU, flash, and RAM to run OS X, Apps, the touchscreen, and store all content, and the second for all the communication radios. Could it be that Apple simply has to drop one motherboard from a fully developed design?
If so, developers, Apple and third parties alike, can target an identical software and hardware config, except for wireless radios, for both of Apple’s huge volume CE products. As a gaming platform, with a revolutionary UI at that, won’t the iPhone and OSX iPod far outsell the PSP, Nintendo Gameboy and DS’ of the world? It would at least immediately become a leader in portable gaming.
[quote author=“SNIPUS”]You could also make a case that a full blown 6G iPod with Wi Fi will sell millions immediatly. And those customers ALL OVER THE WORLD will get used to Safari and Apple so that when the iPhone is introduced in their area they will know exactly what they would be getting. We all know about the iPhone and how great it is but most people world wide do not. The 6G iPod with all the bells and whistles is like an advance advertisment for the iPhone. I see it as a win/win for Apple and the carriers
I think you make a very good point. But also consider that the OSX iPod, even without wifi, would also sell millions immediately and because of the touchscreen may also serve as advanced advertisement for the iPhone.