Analyst predicts the iPad mini will kill off the iPod touch

By , Oct 24, 2012

Is Apple getting ready to discontinue the iPod touch, now that the Cupertino, California firm has a bevy of low-priced alternatives, including the just-announced iPad mini? That’s the opinion of one analyst who has correctly predicted the demise of other Apple products. The iPod touch “has entered the final stage of its product life cycle,” according to Ming-Chi Kuo, analyst with KGI Securities. He also believes Apple “will not invest significantly in developing future models”…

The reason (via AppleInsider): when Apple unveiled the $329 iPad mini and earlier introduced the $299 iPhone 5 (with a two-year service commitment, of course), the lower-priced products cut into sales of the iPod touch.

Although Kuo hit a home-run when she earlier predicted Apple would drop the 17-inch MacBook Pro, this bit of product prognostication seems off-base.

The iPod touch is incredibly popular with consumers. The company regularly announces more than half of all iPods sold are iPod touches. In the first month the new iPod touch and iPod nano were available, three million of the devices were sold, Apple said Tuesday.

Then there is Apple’s historic hesitancy to cull older iPod models. The iPod classic – which still has hard-drive storage – remains alive. If price was the key to determining a product’s lifespan, the $249 iPod classic would have been jettisoned from Apple’s product lineup long ago.

The new iPod touch costs $299/$399 for the 32/64GB version. Apple also sells the previous-generation model for $199/$249 for the 16/32GB version. More on the iPod product matrix over at Apple’s web site.

Here’s Apple’s iPod touch ad from last year.

Then there is the argument that the iPhone 5 is free if you purchase a two-year carrier plan. The iPod touch has always been huge for tweens and teens. The only way a young teen could get their hands on an iPhone is from a parent who gifts the handset. Speaking as a parent, no adult in their right mind would give an iPhone to a text-crazed teen.

This is Apple’s television commercial for 2012 iPod lineup.

The iPod touch has always been the perfect gateway device for the iPhone. Teens could play music and games – as well as texting, using a free app.

Perhaps Apple believes an iPad 2 could serve the same purpose.

What do you think? Is Apple preparing to discontinue the iPod touch?

If so, what is its potential replacement?

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  • mrbwler

    Never they will discontinue the touch. Maybe in 10 years, but not in the near future.

  • samdchuck

    Proving once more that analysts are complete idiots.

  • akshay babbar

    Hell No!!! Apple is going to discontinue ipod touch.. right now apple is only entering in all the segments of the market .. so they don’t wanna lose any customer whether he/she wants computing device or tablets or mobile phone or music storage device.

  • http://twitter.com/SGeeZy Sean Geezy

    The iPhone 5 is free with the purchase of a 2 year carrier plan ?

  • CollegiateLad

    Small form factors have their place. I’d much rather jog with my iPod Touch rather than an iPad Mini. But that’s just me.

  • http://www.facebook.com/xamalis Petros Kyriakou

    ipod touch will be discontinued i believe unless they lower the price.

  • http://twitter.com/Zach_Krase Zach Krase 

    I think you messed up the title of this Article “kill off” not “kill of”

    • http://www.idownloadblog.com/author/dujkan Christian Zibreg

      I did. Fixed the type :)

  • chjode

    I think the mistake was pricing the new iPod touch so high. It seems to me a $150 and $200 price point for an iPod touch and a $250 starting price for the iPad mini would have been the way to go. But then again, I’m not a Wall Street analyst, nor am I a c-level executive of the world’s most valuable company.

    • Caleb

      I completely agree, i feel like the priced the new ipod touch 5 way too high, even though the price is somewhat steep, i think people would still buy it due to its convience

    • TriguyRN

      It is an apple device……….

  • http://twitter.com/HandsomeDNA Handsome DNA

    They better not kill the iPod Touch!!

  • http://twitter.com/JoeTo_97 Joel Torres ツ

    They said it was the number 1 music and game player. They can’t just kill it off. They’d lose a lot of money if they did. All they should do is lower it.

  • http://twitter.com/HiTekkSteff Stephaughn Alston

    “Then there is the argument that the iPhone 5 is free if you purchase a two-year carrier plan.” Did you mean to put the iPhone 4?

  • http://twitter.com/Rickt78 Richard Thompson

    I think she’s WAY off on this one. I know lots of people that don’t own an iPhone… But have iPod touches. And a lot of those people eventually get iPhones. I also know people with iPhones that use their phones as work only devices and have an iPod for “play time” whether its working out, playing games, or watching movies.

  • @dongiuj

    It’s only little children that have an ipod touch so there could still be a demand for them.

  • Luis Finke

    Nope.avi

  • http://twitter.com/spackmanstephen BIG UK

    I don’t think it’s the end of the road for the Touch…it’s maybe going to be morphed into the “cheaper” iPhone we keep hearing about. I’m an Android user, so the Touch is my door to iOS.