Although the iPod’s popularity has waned, Apple Inc is updating its music player for the first time in nearly three years by giving the flagship Touch model a faster processor and better cameras.
The new iPod Touch also enables Apple Music, a US$10-a-month service that offers unlimited playback of millions of songs. Apple Music launched on June 30 as music fans increasingly embrace subscriptions over pay-per-song services such as Apple’s industry-leading iTunes.
Although music players existed before the original iPod’s debut in 2001, the iPod was the first to simplify syncing with digital music collections on personal computers.
It was Apple’s first success beyond personal computers and began a company transformation that led to the iPhone in 2007, the iPad in 2010 and the Apple Watch this year.
Many people now listen to music on smartphones rather than iPods, though. Sales of iPods peaked at nearly 55 million in fiscal 2008, the year after the iPhone came out.
In the most recent fiscal year, which ended in September last year, Apple sold 14 million iPods. By contrast, Apple sold 169 million iPhones in the same period.
As demand has slowed, so has Apple’s updates to the iPod: Apple no longer updates its iPods annually as it usually does with its top sellers.
However, Wednesday’s update shows Apple is not giving up on the iPod.
The Touch is essentially an iPhone without cellular capabilities, as it runs the same iOS operating system and most of the same apps.
Connected to the Internet over Wi-Fi, the Touch extends Apple Music and iPhone apps to teens and other younger customers who might not need cellphones or cannot afford cellular service.
Beyond music, the iPod Touch might get new customers hooked on Apple’s apps, video and other content — such that they will turn to an iPhone, iPad or Mac when they are ready.
Prices for the Touch start at US$199, the same as an iPhone 6 with a two-year service contract, but the iPod Touch requires no monthly service fees for voice, text and data. Calling is possible over Wi-Fi through FaceTime audio and video conferencing.
Without a contract, an iPhone 6 starts at US$649, compared with a few hundred dollars for some Android smartphones.
Roger Kay, president of the market research firm Endpoint Technology Associates, said the iPod Touch helps protect Apple from lower-priced competitors.
“Having a $200 small computer without cellular service is a pretty good price,” Kay said. “This may be a second, third or fourth device for families that already have a bunch of Apple products. The nine-year-old wants something, so they get them a Touch.”
It also makes Apple products more affordable in emerging markets, said Carolina Milanesi, who heads US operations for the Kantar Worldpanel ComTech research group.
Rob Enderle of the Enderle Group said that while iPod sales have been declining, they are still massive.
“Not everyone wants an iPhone, yet a lot of those folks loved their iPods,” he said. “This product will be far more successful than anyone expects.”
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