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Apple will announce 2 new iPhones. Lower end at 200 and high end at 400. The high end will replace the current iPhone.

if apple is willing to just give away touches with the purchase of a new Mac and possibly allowing subsidies on new iPhones, I think its safe to assume that something BIG is planned for the touch platform.

MDN: real. as in REAL BIG.

You've got the right idea in your take: Even at $200, the iPhone rapidly costs more than the iPod because of the monthly charges.

@Jeff the Trader

Sounds plausible.. but is this your guess, or are you plugged into Steve-o's back pocket ?

Jun 03, 08 - 03:13 pm Comment from: jocknerd

Nothing will happen to the iPod touch. It doesn't have a monthly fee like the iPhone does.

The cheapest AT&T;iPhone plan is about $70 per month once you include state and federal taxes. An iPod touch costs $0 per month. As has been said, there's your big difference.

Jun 03, 08 - 03:15 pm Comment from: Demon

I love my iPod touch and wouldn't trade it for an iPhone ever. I'm looking toward the Fall when Apple releases the new iPods a 128GB (I'd settle for a 64GB) touch model. 802.11N WI-FI and GPS would be icing on the cake.

Jun 03, 08 - 03:19 pm Comment from: NeverFade

It's not 'Sell like pancakes', for crimeny's sake, it's 'Sell like hotcakes'!

Who's the editor?!

I'll say it again, the rumor of a subsidized iPhone first came from Scott Moritz, a well-known fudster working in cahoots with Jim Cramer. Scott was the one who said Apple was trying to sell 1M iPhones on their first weekend. This was of course, wrong, but Moritz set the bar so high, that iPhone sales seemed a disappointment, in order to drive down Apple's price. This seems to be their goal again, to drive down iPhone sales, as people wait for the lower price. It's FUD. This rumor has been repeated so often that people forget the original source, and that source is tainted.

Apple should just allow the iPhone to be sold with or without a plan. Without a plan it would function in WiFi only and would basically be a replacement for the Touch. With a plan it would have the phone and cell data capabilities.

Simple and easy to sell to anyone. Kill the iPod Touch!

As the memory of the touch increases, it is the iPod classic that will eventually fade away.

Hmm, I think the $200 price point for an iPhone is pure fantasy.

Maybe $299 for the entry level iPhone and $199 for the entry level iPod touch.

I'll be less surprised if they simply remain at the same price points and receive a feature/storage/software bump.

Now maybe a simple iPhone Nano comparable to the iPod Classic or Nano (no touchscreen and no fancy OS).

That would be cool and go for $199.

First off I'll buy a 16 Gb iPhone for $200 cash... at the first opportunity!

Secondly, I'll buy the new improved touch... as it will become the touch table at the first opportunity... if it can be shown to be better than or equal too a Mac Book... at half the price!

Better a "table" than a "book"

It's not that hard to look to the future to see what the product line of the iPod is going to become in the next few years. The classic and Nano's will eventually merge into one device category(once HDs are totally gone). The iPod touch will become the standard iPod and the iPhone will be the high end. The iPod touch will come in higher storage amounts to make the product a true alternative to the iPhone. They will hit all the price point ranges that they have now.

Shuffle, iPod Nano/Classic, iPod Touch, iPhone.

"sell like pancakes"
hilarious typo

Jun 03, 08 - 03:45 pm Comment from: Brau

If Apple wants to confidently meet or (as usual) exceed their goal of 10 million units, they will simply have to release a phone into the lower price range. What remains to be seen is how they will do this - by reducing features (like the Nano & Shuffle), adding a killer feature, or by leveraging creative payment plans?

I agree with some who say "Kill the Touch". It would be much better to sell an iPhone without a contract and allow them not to use the phone part. Do that and they would Vend like Waffles!

The iPod Touch is generally a pretty useless device. It was a way to sell something to people who couldn't quite pull the trigger on a full-priced iPhone. They should release a low-end iPhone, or just make the single model cheaper, and discontinue the Touch.

The guy is a complete moron. If it's discounted, it will be as part of a contract lock-in. There's no contract with the iTouch...

I have a Touch that I bought because the iPhone has not come to Canada Yet and just like the guy who light up so that the bus will come, as soon as I did Rogers announced the iPhone for Canada (My Ploy worked).

That said I love the iPod Touch, and my son will love it once I get my iPhone. It beats the crap out of my old Palm 3 for functionality and usefulness.

Jun 03, 08 - 04:16 pm Comment from: MCCFR

Zorpo…

Except it works for kids who can't spring for the iPhone and, because it tends to ship with twice the memory as iPhone, people who have real music and video collections.

It also works for all those people who are not interested in iPhone, because - in their end-market - Apple have affiliated themselves to a network that either has poor coverage in their area or where they might have experienced poor customer service at some point in the past.

So it's not really useless, but it is a good idea that you and Phil Schiller never contemplate any kind of job swap.

Jun 03, 08 - 04:31 pm Comment from: Basil Ganglia

I wonder if the EDGE iPhone will remain on the market for $200 and the new G3 iPhones (?16 and 32 Gb) will be at the present price points. The current phone is fine for many users and could pick up some of those who can't afford the present iPhone but don't download a lot of large files or spend too much time on the internet. That could include enterprise customers who need the iPhone mostly for phone and email (OK on EDGE). Companies might buy a lot of $200 iPhones. But I'll be very surprised if Apple prices any of the NEW iPhones at $200. Harder to predict whether AT&T;might underwrite the new phone for a 2-3 yr contract.

IMHO, the iPod touch has great potential. Alas, it is currently priced so very high that few people are going to purchase one. A 32G touch is $499! Get that thing close to $200 and they will fly off the shelves. Many people see it as a solution to several problems, including the fact that they won't switch to ATT just to have an iPhone. But, a compact flip-phone and a touch would do the job very nicely for me.

Well, I'm never going to get an iPhone. I don't like having to look to dial up a phone number. I like my phone to be just a phone. So it's touch all the way for me. Just waiting for more memory before I buy it.

If Apple iPhones will soon start at $200, what happens to iPod touch?

It becomes AppleTV's remote control.

You heard it here first.

Jun 03, 08 - 05:20 pm Comment from: Gandalf

The Game

KenC is spot on. Moritz is a subordinate of the merchants.

iPhone is but a stone.

Something slipped under the radar after the iPhone.

I have to give kudos to some guys, unnamed but appreciated by many readers here, they are both good guys and clever. Power to their elbows.

Sorry to be so cryptic but the bad guys read this too, they are not very bright but they are powerful.

Jun 03, 08 - 05:24 pm Comment from: Predrag

The chances of a $200 iPhone are minimal at best. Apple's tradition is to refresh hardware at same price point. There is absolutely no reason for price to drop. The $400 was the sweet spot that had stretched logistics of pushing the first gen. iPhone through to the limits. Apple executed flawlessly, but the device was often sold out.

With all the additional features the new version will get, $400 will be an excellent deal.

And iPod touch is perfectly safe.

Jun 03, 08 - 05:59 pm Comment from: BiZarRo BaLlmEr

hopefully the Touch 32Gig drops 100 dollas

@Predrag
Is "absolutely no reason for price to drop" based on the same insight about the next iPhone revision as "Will it have 3G? That's no really important. 3G is one of those myths ..." and "The next revision will come once this one reaches all major global markets ..." in your post some months ago
http://www.macdailynews.com/index.php/weblog/comments/16235/

What the hell is this Moron's problem?
Under what condition would he write a positive note?
It is like Apple is under lots or problems under any condition.
What an idiot!

I do worry a little bit about the iPod touch.

No, it doesn't have a monthly recurring bill, but most of us have cell phones anyway. The iPhone data plan is an extra $20 / month. At $399 (middle priced model with today's iPod touch), the difference between that and a $200 iPhone is 10 month's worth of a data plan.

So the additional cost of an iPhone is 14 months * $20 = $280. The iPhone is still more expensive over the long run, but not by that much. My personal opinion is that a subsidized iPhone will kill the iPod for anyone who can do a little math.

Jun 03, 08 - 07:07 pm Comment from: MobileAdmin

People .. the new 3g model is not going to be $199. That is fantasy. Here is the likely arrangememt.

Steve Boy does his thing and annouces the 3g model with a RETAIL price of $399, then mentions that at&t;is going to give a $200 discount for NEW activations or those who want to renew their 2 year contract. There's your $199. I don't really see this as it basically throws their whole pricing scheme out of whack so if the current EDGE iphone stays around it has to be a lower price point. Possible that would be the "cheap" iphone and the 3g is strictly $399.

The itouch is basically another ipod and not part of the equation.

Jun 03, 08 - 07:47 pm Comment from: Predrag

To Business Remodel,

I am really impressed that you found time to look up an opinion I had made over four months ago. You may have a point regarding the second part of the statement ("...once this one reaches all major global markets..."), but the first one still stands; 3G is one of those myths, where it is supposedly so superior to EDGE, there isn't comparison. Millions of people use iPhone every day for web surfing on EDGE. If it sucked royally, they would forget about the surfing; yet, they don't, and they surf. General consensus among iPhone owners out there is that EDGE is surprisingly good for web surfing.

Having said that, I must say, the (possible) availability of 3G on the upcoming version will probably be one of the contributing factors for me to get the device, as long as the data plan for 3G doesn't get more expensive (or restrictive) than the EDGE plan.

Yep, iPhone for $200. Keep talking like it is fact then when Jobs states the new iPhone will sell for $299 or $399 all the dumbsh-- investors will tank the stock because it was suppose to sell for $200. Keep the rumors going you a--holes!! Like June 9th will be the 3G iPhone and if not, tank the stock based on a rumor that did not come true. Hell the main reason it went from 200 to 117 was based on false rumors. Increase market share, selling in new markets, Mac's selling like crazy, those are the facts that should cause a nice steady increase in the stock. But I guess facts don't matter to a bunch of stupidsh-- investors if they sell on a rumor not coming true.

1) a $200 model with ipod touch features, but no cell phone
2) the $400 phone model, with GPS and other bells added
3) the touch as we know it ceases, to be reborn as ipadd (personal access display device) which is the Newton, gussied up with the new touch capabilities, a bigger screen, full pda capabilities and real connectivity, including bluetooth for sync to cell phone capability to keep those data minutes up. $399

Remaining stock of touch models to be given away for the college promotion.

I for one, would love to have them add 3G, or even Edge with a $10/mo data only contract to the iPod Touch. Those of us who have a phone provided by our employers, don't really need another phone. Also, those of us who live in non-urban areas, don't have much access to wi-fi.

Jun 03, 08 - 08:27 pm Comment from: Ampar

Predrag said, "I am really impressed that you found time to look up an opinion I had made over four months ago."

That's nothing. I've acquired copies of your pre-school records, your dental x-rays and the remains of that pet hamster that you thought just ran away. They were on eBay.

Jun 03, 08 - 09:27 pm Comment from: Dick

I hope that AT&T;raises the iPhone price by $200 - rather than giving rebates.

And, I hope that they use the money to build some F***ing towers !

The AT&T;coverage where I live is ZERO. Verizon's signal (who first turned down the iPhone) is everywhere and strong like crazy.

I am so frustrated !!!!!

Jun 03, 08 - 09:49 pm Comment from: Predrag

to Ampar:

You are one funny guy! I gotta say, your stuff here always cracks me up, especially those obscure literary, theatrical or movie references. Keep them coming, man!

@Predrag
"I am really impressed that you found time to look up an opinion I had made over four months ago."

Thank you. But to be honest, it is not very hard to find an opinion you have made.

If apple does do anything with touch, I suspect it will sapply the technology to a Nano.

Think about it - the multi-touch panel is something the competition can never have due to patents. As such this is a key differentiator for apple - why would you drop it. Worst case, you would incorporate the technology into the other ipod formats:-

Nano - small screen multi-touch
Touch - large screen multi-touch

classic - hdd based model - but will be eventually dropped within 18 months as memory prices lower and capacities rise!

Jun 04, 08 - 05:52 am Comment from: Ampar

To Predrag:

It seems to me there is room in the market for the touch with its larger screen - for people who do not need or want cellphone integration. As an organization learning professional, I have been looking at the touch for mobile learning. But not to offend anyone's sensibilities here... Flash integration would be nice for that purpose (although not a firm requirement).

Jun 04, 08 - 07:48 am Comment from: jtc

@something huge is coming!
Apple already confirmed that they are giving away a free iPod touch or nano to college students who are buying a new mac....... Though for regular people that probably wont happen till later on.

Jun 04, 08 - 08:55 am Comment from: sowza1

Where do people keep getting the idea that an iPhone automatically comes with a $60 dollar a month tab???
We all have cell phones, from grade school up. I paid $39 a month before my iphone and now pay $59 a month. Wouldn't that be a $20 dollar tab that comes with the iphone and gives you unlimited email and internet????

Come on, its not bad at all.

Put GPS in the iPod touch and sell a car hookup kit for it.

The iPod touch will be OK.

at least here in germany apple has to allow for subsidizing the iphone. (remember they only sold 100.000 units here in 8 months) on one here is buying a 400 euro handset when you get other smartphones like the N95, htc touch or a blackberry "for free" with a 35 euros/month contract. you might say "but it's an iphone not a friggin' nokia!" and you are right, but people here just don't pay 400 euros upfront, they are used to having the cost of the handset included in the monthly charges. offer it for 99 or better "free" (and even make more than it up for it with a more expensive contract) and they will come. as sad and stupid it might be: that's how the mobile phone market here works (80 million people) and even apple can't change that model.

Who cares about the touch? The PDA died a long time ago. Go iphone or go home.