Why I am Keeping an Eye on the New iPod

When Apple introduced the iPod, it pretty much changed my mobile music life. Before, I depended on a Sony Walkman and cassette tapes. But, like many of us in tech, we liked the concept of the early MP3 players but they were hard to use and difficult to find content or music to play on them. I was working with one of the early vendors of MP3 players and, from the beginning, I saw firsthand its potential as well as its problems since, at that time, getting music onto them was not for the faint of heart. Apple changed all that with the iPod. While the iPod itself was a great product, the real value came via Apple’s dedicated area to download music and the ease of side-loading music from the Mac to the iPod.

Over time, all of those iPod music features were rolled into iPhone and the need for a dedicated iPod player declined. Even so, there is still demand for a dedicated iPod and Apple recently introduced an updated version with new colors, particularly a gold one that will have great appeal in China. It has an M8 coprocessor that makes your iPod capable of supporting ambient activity and it has an A8 chip for faster processing. There is a new camera too, which makes the iPod a solid alternative for people who don’t have a dedicated smartphone but want the ability to take photos, use the web, and maybe make some WiFi calls. Clearly, this audience is much smaller than the market for the iPhone but Apple knows it still appeals to a relatively broad audience so they brought out these new models with that in mind.

But, if you look closely at these new iPods, they are basically an iPhone without the 4G cellular radio in it. This makes me think there may be more to these new iPods than one sees on the surface. One key thing is it costs much less than an iPhone and you buy it at a fixed price. No contracts or other costs are associated with owning it beyond what you might buy in terms of apps, music, and videos. Another interesting thing is, in the US and many places in Europe, WiFi is available in almost all public places, hotels, and even stores — with this type of connection, the new iPods can function as an iPhone.

But the reason I am keeping my eye on the iPod is that, with this design and WiFi-based functionality, it could be the forerunner of a product Apple takes to the mid-to-lower end of the mobile handset market. We all know Apple owns the premium market for smartphones and that won’t change. But in terms of unit shares, the premium market for smartphones represent less than 15% of the overall smartphone market that will sell close to 2.1 billion smartphones this year. Yes, Apple gets most of the revenue of all smartphones sold but keep in mind, Apple’s apps and services could be used well beyond those who buy iPhones in the future. More importantly, the market for premium smartphones is not actually growing. Most of Apple’s sales are from those who can afford the pricier models and update them on a semi-annual basis.

There is an emerging middle class who aspires to own an Apple product. But, at the lower end of this audience, they still can’t afford an iPhone. Also what people often forget is that, in most of the world, they are still on 2G and 3G networks and the cost of a 2G or 3G modem is very cheap these days.

What if Apple is able to leverage this new iPod design that is much less expensive than any iPhone they have today and eventually put in a low cost 2G or 3G cellular modem and target it at what is a large and growing lower middle class market? They could use this to get customers into the Apple ecosystem which could be a gift for Apple that keeps on giving. Its design is very Apple but well under the premium cost of an iPhone. It would have the Apple cachet without the high price.

For many years, I thought Apple would never go after a lower end audience. I still don’t think they will go after the sub $100-$125 smartphone market that dominates the really low-end smartphones today. But I have a hard time believing Apple is willing to give up on this emerging middle class, even at the low end, one they could win with a less expensive product and still give them the great Apple experience the company delivers on more expensive iPhones. More importantly, as the low-end of this middle class rises in earning potential, this would assure Apple a built-in audience for more expensive iPhones in the future.

That is why I am keeping my eyes on the new iPod. I think there is more than meets the eye.

Published by

Tim Bajarin

Tim Bajarin is the President of Creative Strategies, Inc. He is recognized as one of the leading industry consultants, analysts and futurists covering the field of personal computers and consumer technology. Mr. Bajarin has been with Creative Strategies since 1981 and has served as a consultant to most of the leading hardware and software vendors in the industry including IBM, Apple, Xerox, Compaq, Dell, AT&T, Microsoft, Polaroid, Lotus, Epson, Toshiba and numerous others.

145 thoughts on “Why I am Keeping an Eye on the New iPod”

  1. Funny, I think the exact opposite: they key feature of the iPod is that it is NOT a phone, so
    – no iPhone cannibalization. Apparently Apple are delaying a “6C” (plasticier) or “6-” (smaller) to avoid hurting the 6.
    – no contract, so a lot cheaper than any phone. Of course you can get a full Android phone at the iPod’s price, but if you don’t intend to get a contract, that’s immaterial.
    – probably a good older kid/young teen product especially, with a natural upgrade to dad’s/mom’s old phone later on.

  2. I am actually much more interested in an iPod device (Shuffle, Nano) that would connect directly to your iPad, iPhone or even Android device and download music from there. Going forward, we can expect less people to own PCs and more people to only own mobile devices, and this trend is more pronounced in emerging markets. Requiring a PC connection is very, very old-fashioned in this day and age and stinks more of negligence than the inherent limitations of a dedicated music device.

    If an iPod can connect to Apple Music on Android and download music from there, then you immediately have a product that can appeal to the emerging middle class. Remember Apple Music is only $2 per month in India. There’s a lot that can be done around music that can enforce the Apple brand in developing countries.

    1. Naofumi , with regards to india – is piracy/free strongly rooted in the culture there ? i know it is so here in Israel, so i don’t think Pay -per-music will be a success here, so maybe the same goes for india ?

      1. I would never say that piracy is rooted into any culture. My view is that any emerging country *has* to start with a disrespect of IP because they have to copy. As countries grow and catch up with developed countries, then and only then should they start respecting IP. I honestly don’t see how an emerging country could rapidly grow without rampantly copying developed countries. I’m a bit surprised that Israel, which is as far as I know a very developed country, does disrespect IP, but that’s another issue. My view is that piracy is not a cultural issue, but a development/wealth issue.

        Anyway coming back to India, from what I have heard, piracy of apps is the norm and I would expect the same to be true for music, video, etc. However, I’ve also learnt that there are local music streaming startups in India that charge $2 per month. Apple has priced Apple Music at the exact same price. Now if local music startups, which should know the local market, are pricing at $2 per month, I would expect that it is the price point at which many Indians would consider paying instead of pirating.

        This, I think is the rationale for differential pricing of entertainment media around the world. If labels simply charge the same price that they do in developed countries, all they do is encourage piracy. Instead, if they price it at a level at which customers can act honestly without breaking the bank, then they will do so.

        So in conclusion, I think paying for music can succeed in India and other developed countries if the local marketing organisations have the autonomy to decide the local price for themselves. It will not succeed if the global headquarters tries to apply a single price to every country, irrespective of the disposable income of the citizens.

        https://twitter.com/narenbalaji/status/621920806671507456

  3. I just don’t get why apple does not make GPS available. The iPod would be so much more versatile with it.

  4. That is very interesting, You are an excessively skilled blogger.
    I have joined your feed and look ahead to in quest of
    extra of your great post. Additionally, I’ve shared your site in my social networks

  5. Excellent post. I used to be checking continuously this blog and I am impressed!
    Very helpful information specifically the remaining part 🙂 I care
    for such information much. I used to be looking for this
    particular info for a very long time. Thank you and good luck.

  6. I have been surfing online more than three hours today, yet I never found any interesting
    article like yours. It is pretty worth enough for me. Personally, if all web owners and bloggers made good content as you did,
    the internet will be a lot more useful than ever before.

  7. My spouse and I stumbled over here different website and
    thought I might check things out. I like what I see so now i’m following you.
    Look forward to checking out your web page again.

  8. Terrific post however I was wanting to know if
    you could write a litte more on this subject?
    I’d be very thankful if you could elaborate a little bit
    further. Bless you!

  9. I have learn several excellent stuff here. Definitely
    value bookmarking for revisiting. I wonder how a lot effort you set to make such a wonderful informative web site.

  10. We’re a group of volunteers and starting a brand new scheme in our community.
    Your website offered us with valuable info to work on. You’ve performed a formidable job and our whole
    group might be thankful to you.

  11. Hi, I do believe this is a great website. I stumbledupon it
    😉 I may revisit yet again since I book-marked it. Money
    and freedom is the best way to change, may you be rich and
    continue to guide other people.

  12. Heya i’m for the first time here. I came across this board and I find It really useful &
    it helped me out much. I hope to offer something back and help others such as you aided me.

  13. Woah! I’m really loving the template/theme
    of this site. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between usability and appearance.
    I must say that you’ve done a awesome job with this.
    Additionally, the blog loads extremely fast for me on Chrome.
    Excellent Blog!

  14. Attractive element of content. I just stumbled upon your web site and in accession capital to say that I acquire
    in fact loved account your blog posts. Any way I will be subscribing
    in your feeds or even I fulfillment you get right of entry to consistently quickly.

  15. Amazing! This blog looks just like my old one!

    It’s on a totally different topic but it has pretty much the same
    page layout and design. Superb choice of colors!

  16. fantastic put up, very informative. I wonder why the
    other specialists of this sector don’t notice this.

    You must continue your writing. I’m sure, you’ve a great readers’ base already!

  17. Greetings! Very useful advice in this particular article!
    It is the little changes that will make the most important
    changes. Thanks for sharing!

  18. May I just say what a relief to discover a person that really understands what
    they’re talking about over the internet. You certainly know how to bring an issue to light and make it important.
    A lot more people should read this and understand this side of the story.

    It’s surprising you’re not more popular because you most
    certainly have the gift.

  19. Hello! I know this is kind of off topic but I was wondering which
    blog platform are you using for this site? I’m getting fed up of WordPress because I’ve had
    problems with hackers and I’m looking at options for another
    platform. I would be fantastic if you could point me in the direction of a
    good platform.

  20. I’ve read a few good stuff here. Definitely value bookmarking for revisiting.

    I wonder how much effort you place to create such a excellent informative web site.

  21. hello!,I really like your writing so so much! percentage we keep in touch more approximately your post on AOL?
    I need a specialist in this area to solve my problem.
    May be that is you! Having a look forward to look you.

  22. Hi, Neat post. There’s a problem together with your website in internet explorer, could check
    this? IE nonetheless is the market chief and a huge element of folks will miss your
    excellent writing because of this problem.

  23. magnificent issues altogether, you just won a new reader.
    What could you suggest about your post that you just made
    some days in the past? Any certain?

  24. With havin so much content and articles do you ever run into any issues of
    plagorism or copyright violation? My website has a lot of
    exclusive content I’ve either written myself or outsourced but it looks like a lot of it
    is popping it up all over the web without my authorization.
    Do you know any methods to help stop content from being ripped off?
    I’d really appreciate it.

  25. What i don’t realize is in reality how you’re no longer actually a lot more smartly-preferred than you might be right now.
    You’re so intelligent. You already know thus significantly
    when it comes to this subject, produced me in my
    opinion consider it from so many numerous angles.
    Its like men and women don’t seem to be fascinated unless it
    is one thing to do with Woman gaga! Your personal stuffs great.
    Always take care of it up!

  26. My brother suggested I would possibly like this blog.
    He was totally right. This put up actually made
    my day. You can not consider just how much time I had spent for this info!
    Thank you!

  27. My coder is trying to persuade me to move to .net from PHP.
    I have always disliked the idea because of the expenses.
    But he’s tryiong none the less. I’ve been using Movable-type on a variety
    of websites for about a year and am anxious about switching to another platform.
    I have heard very good things about blogengine.net.
    Is there a way I can import all my wordpress content
    into it? Any help would be really appreciated!

  28. Heya i’m for the first time here. I came across this board and
    I find It really useful & it helped me out much. I hope to
    give something back and aid others like you helped me.

  29. Hey, I think your site might be having browser compatibility issues.

    When I look at your website in Firefox, it looks fine
    but when opening in Internet Explorer, it has some overlapping.
    I just wanted to give you a quick heads up! Other then that, awesome blog!

  30. Wow, incredible blog format! How long have you ever been running a blog for?
    you make blogging look easy. The entire look of your website is magnificent, let alone the content!

  31. I believe what you typed made a great deal of sense. However, think
    on this, what if you wrote a catchier post title? I ain’t
    suggesting your information is not solid., however what if you added something that makes
    people want more? I mean Why I am Keeping an Eye on the New iPod – Tech.pinions is kinda vanilla.
    You could look at Yahoo’s front page and watch how they create post titles
    to grab viewers to click. You might try adding a video or a related picture or two
    to get people interested about what you’ve got
    to say. Just my opinion, it might bring your blog a little bit more interesting.

  32. hello there and thank you for your info – I have definitely picked up something new from right
    here. I did however expertise a few technical issues
    using this web site, as I experienced to reload the web site a lot of times previous to I could get it to load correctly.
    I had been wondering if your hosting is OK? Not that I’m complaining, but slow loading instances times
    will often affect your placement in google and can damage your quality score if advertising and marketing with Adwords.
    Anyway I’m adding this RSS to my email and can look out for much more of your respective fascinating content.
    Make sure you update this again soon.

  33. Hi there! I know this is kinda off topic however , I’d figured I’d ask.
    Would you be interested in trading links or maybe guest writing a blog article or vice-versa?
    My blog addresses a lot of the same subjects as yours and I believe we
    could greatly benefit from each other. If you are interested feel free to send me an email.
    I look forward to hearing from you! Terrific blog by the way!

  34. You could certainly see your skills in the
    article you write. The sector hopes for more passionate writers like you who are not
    afraid to say how they believe. All the time go
    after your heart.

  35. I’m really enjoying the design and layout of your website.
    It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit
    more often. Did you hire out a designer to create your theme?
    Fantastic work!

  36. This is really interesting, You’re an overly professional blogger.
    I’ve joined your rss feed and look forward to searching for
    more of your excellent post. Additionally, I’ve shared
    your site in my social networks

  37. Hello There. I discovered your blog using msn. That is a really smartly written article.
    I will be sure to bookmark it and come back to read
    extra of your useful info. Thanks for the post. I’ll definitely comeback.

  38. Good day! This is kind of off topic but I need some advice from an established blog.
    Is it very difficult to set up your own blog? I’m not very techincal but I can figure things out pretty fast.

    I’m thinking about creating my own but I’m not sure where
    to begin. Do you have any ideas or suggestions?
    With thanks

  39. I think this is among the most significant information for me.
    And i am glad reading your article. But want to remark on some general things, The
    web site style is perfect, the articles is really excellent
    : D. Good job, cheers

  40. If some one wishes to be updated with most up-to-date
    technologies therefore he must be pay a quick visit
    this website and be up to date everyday.

  41. I do trust all the ideas you have presented on your post.
    They are really convincing and will certainly work.
    Still, the posts are very brief for novices.
    Could you please prolong them a little from next time?
    Thank you for the post.

  42. Do you have a spam issue on this website; I also am a blogger, and I was curious about your situation;
    we have created some nice practices and we are looking to exchange
    strategies with others, be sure to shoot me an email if interested.

  43. Can I just say what a comfort to find somebody who truly knows what they are discussing over the internet.
    You definitely understand how to bring an issue to light
    and make it important. More people should read this
    and understand this side of your story. I was surprised that you’re not more popular since you most certainly have
    the gift.

  44. Hey I know this is off topic but I was wondering if you knew of any widgets I could
    add to my blog that automatically tweet my newest twitter updates.
    I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this.
    Please let me know if you run into anything. I truly enjoy reading your blog and I
    look forward to your new updates.

  45. Its such as you learn my mind! You seem to know a lot approximately
    this, such as you wrote the e-book in it or something.
    I believe that you just can do with a few p.c. to power the message
    house a little bit, however other than that, this is excellent blog.
    A great read. I will certainly be back.

  46. Somebody necessarily assist to make critically posts I would state.
    This is the first time I frequented your website page and
    up to now? I amazed with the research you made to make this actual publish
    extraordinary. Wonderful job!

  47. Hi! Quick question that’s entirely off topic. Do
    you know how to make your site mobile friendly? My website looks
    weird when browsing from my iphone4. I’m trying to find a theme or plugin that might be
    able to correct this issue. If you have any suggestions, please share.
    Thank you!

  48. Hello there! Would you mind if I share your blog with my twitter group?
    There’s a lot of folks that I think would really
    enjoy your content. Please let me know. Thanks

  49. Do you have a spam problem on this site; I also am a
    blogger, and I was wondering your situation; we have created some nice
    practices and we are looking to swap techniques with other folks, be sure
    to shoot me an e-mail if interested.

  50. Greetings! Very helpful advice within this article!
    It is the little changes which will make the most important changes.
    Many thanks for sharing!

  51. Hi there just wanted to give you a quick heads
    up. The text in your content seem to be running off the screen in Chrome.
    I’m not sure if this is a formatting issue or something to do
    with browser compatibility but I thought I’d post to let you know.
    The layout look great though! Hope you get the
    issue fixed soon. Thanks

  52. Hola! I’ve been following your website for some time now and finally got the bravery to go ahead and give
    you a shout out from Atascocita Texas! Just wanted to say keep up the fantastic job!

  53. I blog often and I seriously appreciate your content.

    This great article has really peaked my interest.
    I’m going to take a note of your blog and keep checking for new information about once per
    week. I opted in for your Feed too.

  54. I’ve been surfing online more than 4 hours today, yet I never found any
    interesting article like yours. It’s pretty worth enough for me.
    Personally, if all site owners and bloggers made good content as
    you did, the net will be a lot more useful than ever before.

  55. Howdy! I know this is kind of off topic but I was wondering which blog
    platform are you using for this website? I’m getting
    tired of WordPress because I’ve had problems with hackers and I’m looking at alternatives
    for another platform. I would be fantastic if
    you could point me in the direction of a good platform.

  56. I have been browsing on-line greater than three hours these days, yet I never discovered
    any interesting article like yours. It’s pretty worth enough for
    me. Personally, if all webmasters and bloggers made just right content material as you probably did, the web might be
    much more helpful than ever before.

  57. Hey there just wanted to give you a quick heads up.
    The text in your article seem to be running off the screen in Internet explorer.

    I’m not sure if this is a format issue or something to do with web browser compatibility but I figured I’d post to
    let you know. The layout look great though!
    Hope you get the issue resolved soon. Many thanks

  58. Greetings I am so happy I found your blog page, I really found you by mistake,
    while I was researching on Google for something else, Nonetheless I am here now and
    would just like to say thanks a lot for a fantastic post and a all
    round interesting blog (I also love the theme/design), I don’t
    have time to go through it all at the minute but I have saved it and also added your RSS feeds, so when I have time
    I will be back to read a lot more, Please do keep up the fantastic job.

  59. hey there and thank you for your information – I’ve certainly picked up anything
    new from right here. I did however expertise a few technical issues using this web site, since I experienced
    to reload the web site many times previous to I could get
    it to load properly. I had been wondering if your web host
    is OK? Not that I am complaining, but sluggish loading instances times will very frequently affect your placement in google
    and can damage your high-quality score if advertising
    and marketing with Adwords. Anyway I’m adding this RSS to my e-mail and
    can look out for a lot more of your respective fascinating content.
    Make sure you update this again very soon.

  60. Thanks for the auspicious writeup. It in truth used
    to be a amusement account it. Glance advanced to far brought agreeable from you!
    By the way, how can we keep in touch?

  61. Thank you for every other excellent article. Where else may anybody get that type of info in such a perfect method of
    writing? I have a presentation subsequent week, and I am at the look for such information.

  62. You made some good points there. I looked on the web to find out more about the issue and found most people will
    go along with your views on this web site.

  63. Hey there! I know this is kind of off topic but I was wondering if you knew where
    I could get a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one?
    Thanks a lot!

  64. Hello there! Quick question that’s entirely off topic.
    Do you know how to make your site mobile friendly? My blog
    looks weird when viewing from my iphone4. I’m trying to find a theme or plugin that might be able to
    correct this issue. If you have any recommendations, please share.
    Thanks!

  65. Its like you read my mind! You seem to understand a lot approximately this,
    such as you wrote the guide in it or something.
    I feel that you can do with a few % to force
    the message house a little bit, however other than that, this is
    wonderful blog. A great read. I will certainly be back.

  66. Hello there, You’ve done an excellent job. I will definitely
    digg it and personally suggest to my friends. I am sure they’ll be benefited
    from this site.

  67. Thanks for ones marvelous posting! I truly enjoyed reading it, you could
    be a great author. I will ensure that I bookmark your blog and definitely
    will come back down the road. I want to encourage yourself to continue your great job, have a
    nice afternoon!

  68. I used to be recommended this web site by way of my cousin. I am not positive
    whether this submit is written by him as no one else understand such unique approximately my problem.

    You are amazing! Thanks!

  69. My brother suggested I might like this blog. He used to be entirely right.
    This put up truly made my day. You can not consider just
    how so much time I had spent for this information! Thanks!

  70. Excellent blog! Do you have any suggestions for aspiring writers?

    I’m hoping to start my own blog soon but I’m a little lost on everything.
    Would you advise starting with a free platform
    like WordPress or go for a paid option? There are so many
    choices out there that I’m completely overwhelmed ..

    Any suggestions? Kudos!

  71. I do not even know how I ended up here, however
    I assumed this post was great. I do not understand who you
    might be but certainly you’re going to a well-known blogger in case
    you are not already. Cheers!

  72. Hmm it looks like your website ate my first comment (it was super long)
    so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog writer but I’m still new to the whole thing.
    Do you have any helpful hints for newbie blog writers?
    I’d really appreciate it.

  73. Thanks for some other informative blog. The place else could I get that type
    of information written in such an ideal manner? I have a challenge that I am simply now operating on, and I’ve been on the look out for such information.

  74. Hi there would you mind letting me know which web host you’re using?
    I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot quicker then most.
    Can you suggest a good web hosting provider at a honest price?
    Many thanks, I appreciate it!

  75. Hi! I could have sworn I’ve been to this site before but after
    reading through some of the post I realized it’s new to me.
    Nonetheless, I’m definitely glad I found it and I’ll be book-marking and checking back often!

  76. Personal Experiences: Personal experiences, including life events and interactions, are another influential factor. Experiences, whether positive or negative, can shape values by influencing perspectives, priorities, and beliefs.

Leave a Reply

Your email address will not be published. Required fields are marked *