While the industry eagerly awaits Apple next’s media event, AppleNApps has dusted off the rumor that Apple will introduce a 3G iPod touch this Fall to compete with the prepaid market. Although a cheap, data-based, VoIP-intensive iPhone would definitely shake up the prepaid niche, such a product would also define a new category of mobile handsets — and that’s something that Apple has been known to do.
AppleNApps claims that Apple is currently “working on” a 3G iPod touch for an announcement this month:
“After talking with multiple people over the past few weeks, we had a lengthy chat with one person who gave us great news about the next iPod Touch (though they would like to remain anonymous). We’ve used this person in the past, but they did qualify their remarks, saying that the iPod Touch changes should make it, but there’s no guarantee the changes will be ready for fall. The 3G iPod Touch idea intrigued us so much back in July, and we’ve been trying to find one of our contacts who can give some credence to the idea. A few have declined to comment, while others honestly have no idea, but the source for this report says that Apple is indeed working on a 3G iPod Touch. Apple is intent on announcing the device during their September event which they usually save for their iPod line, but will include the iPhone as well this year.”
To understand this rumor more clearly, one can look at the dozens of case and component leaks that have surfaced over the last several weeks. Most, if not all, of the leaks point to something totally different coming out of Cupertino soon.
Before we go any farther, it’s important to remember that AppleNApps is a relatively new site with no track record to base this report’s legitimacy on. We want to give them the benefit of the doubt, but this is the same site that started the rumor of an “iCloud iPhone” not too long ago.
Could the iCloud iPhone and the 3G iPod touch be the same thing? Maybe.
What separates an iPhone from an iPod touch? Have you every thought about that? The answer is only one thing: the phone. And you can see in the evolution of the iPod touch over the years that Apple has been bringing the two products closer together, with the most recent iPod touch generation receiving dual-facing cameras and FaceTime. Apple is setting itself up here.
Apple wants to get iOS into the hands of as many people as possible. While hardware is important, Apple has always been about developing an ecosystem that is tied together by seamless software.
The thought of a 3G iPod touch that customers can purchase data for on a month-to-month basis with carriers is very enticing, but the likelihood of a re-tooled iPhone 4 that serves the same purpose is much more appealing.
The iPod is already dead. Apple originally unveiled the iPod touch because it was “an iPhone without the phone.” That was appealing to consumers. And that’s why it sold well. If Apple can relaunch the iPhone 4 with support for all carriers and the option of a month-to-month data-only plan, why not? Apple gets to tighten up its product line, and the iPod touch’s customer base stays happy.
It’s a win-win situation.
Alex Heath is a journalist who works for Tech Insider. He’s the former co-host of The CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like “ICONIC: A Photographic Tribute to Apple Innovation.” He lives in Lexington, Kentucky. If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Follow him on Twitter.
30 responses to “Why Would Apple Do A 3G iPod Touch When They Can Do A Prepaid iPhone 4 Instead? [Opinion]”
I’ve been talking about a 3G iPod Touch ever since they came out with the 3G iPad. It’s a wonderful idea. It shakes things up. The iPod is an entry level device for kids to young adults setting them up for a lifetime of Apple purchases. Having a 3G iPod Touch would be much more affordable than an iPhone, even a cheaper prepaid iPhone. I feel there is a huge market for said device.
The question is will the carriers allow one especially with a phone style earphone and mice like the iPhone. True most people would just use it like they do an iPhone… which is now making any call on it. But not having those phone speakers and mic might be a turn off for some. However I bet it’s not enough of a turn off given the price savings.
Been saying it for months: I think Apple will produce a wifi iPhone to replace the iPT. This will bring continuity to the iPhone lineup: 3G iPhone & Wifi iPhone to match 3G and Wifi iPads. This will also allow prepaid phones to be sold, but will also allow users to activate their phones on ANY network without being forced into a data plan (no 3G capability = no way for the networks to force us to buy it). This iPod/iPhone hybrid would in an instant become the phone of choice for anyone who would previously have bought a “dumb” phone. And that’s 50% of the cell phone market, folks.
Outside of the USA this isn’t even worth discussing it’s so obvious. You have to remember that the US view is twisted by the fact that the carriers have exclusivity and power that they simply don’t anywhere else.
No contract 16 GB iPod touch with 3G: $350
No contract 16 GB iPhone: $650
That’s kind of a big difference there. In addition, always-available Internet access is a significant is a significant enhancement for all the things people do with iPod touches: games and media. Calling? Not so much. That voice plan is something like a $40/month add on for phones.
It’s a great way for Apple to increase ASP for iPod touches. Significantly increase ASP plus having incentives to sell even more for people who don’t want or aren’t allowed voice/phone capability.
still can’t believe it I just got a $829.99 iPad2 for only $103.37 and my mom got a $1499.99 HDTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiot to ever pay full retail prices at places like Walmart or Bestbuy. I sold a 37″ HDTV to my boss for $600 that I only paid $78.24 for. I use BidsNéw.com
I don’t think it will be a “WiFi phone” it will be an iPod touch with a SIM. You will use pay as you go SIMs or buy a plan use like for an iPad 3G. It won’t be marketed or sold as a “WI-FI phone.”
Why a Touch and not a phone? Easy. Kids.
Well, the new iPhone 5 photos look seriously like an iPod touch!
So basically it would be like a small 3G iPad, which is kind of like a large iPod Touch with 3G. I know there are some differences as far as software goes, so don’t get crazy with me yet.
If Skype worked over 3G and I could at least use the headphones to talk, I would definitely buy one if it existed. I rarely ever make voice calls; Most of my communication is either face-to-face, SMS or video chat on my computer. For me, voice calls are for emergencies (which I haven’t had yet), calling ahead to a store or restaurant, or calling my kid’s school. I don’t think it’s worth paying for even 450 minutes a month if I only use about 30. A 3G iPod Touch would be awesome if there were no restrictions on VOIP calling.
But the wireless carriers would have a fit. I’m sure data would be expensive too… like 2GB for $50.
Queue Sprint, the bottom of the barrel carrier, to cut off their nose to profit. I think what is happening is Sprint is going to cut profit to carry the iTouch “Phone”. $30-$40 a month 2GB data plan with voice traveling over the data stream ala Skype/Voip style.
Sure, ATT would never agree to stop ripping of their clients, but Steve Jobs in the CEO’s office of Sprint saying “do you want to change the world and sell the $30 a month iPhone Mini product line?”
Skype works over 3G on my iPhone. Why wouldn’t it work similarly on the iPod?
Does Skype let you call anyone with your Skype Out number?
If yes: I would imagine the feature being disabled on the iPod Touch
If no: That’s kind of my point. I’d want to use my Skype Out/In number.
They do have a prepaid iPhone4 ? At least in Ireland but granted we have a huge prepaid market but for €30 a month I get Free Internet, Free texts to any network (in Ireland) and €10 extra credit so I end up with €40 credit for calls. Works out a lot cheaper than bill pay and whilst the phone itself costs more upfront it means I am not tied to any contract.
Kids.
If I had kids, I wouldn’t want to give my 10-year-old an iPhone, but an iPod3G? Yeah probably. Also, I plan to get an iPhone but I also plan to keep my iPod Touch for just…music. A 3G would be great for radio in the car without tying up my phone.
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This is limiting the scope to carriers that use sims. I agree that it won’t be marketed as a Wifi iPhone though. But the continuity is there, and I think this product is coming. One way or another.