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Apple will release its fiscal year third-quarter earnings tomorrow, and some analysts are predicting that the poor man's iPhone--the iPod touch--will be an important piece of the results, thanks to its compatibility with the App Store.
According to AppleInsider, Caris & Company on Friday predicted that the iPod touch will grow toward 10 percent of Apple's revenues, but of course, iPhone and Mac sales will be the primary growth engines.
"No longer just a music/video player, iPod touch is increasingly a gaming device, etc., with video camera a likely addition in next (fall?) refresh," said the firm's report. "We believe iPod touch sales have been ramping all year, representing an estimated 18 percent of iPod units since September 2007 launch."
J.P. Morgan sees the iPod touch as a netbook of sorts. "We think the iPod touch provides the portability, Internet browsing, and email features that are the hallmark of the netbook PC experience," the report states. "With the iPod touch, the main limitation is the small screen size relative to netbooks. While we continue to believe that Apple will introduce its own netbook-like device, in the interim, the iPod touch should help the company benefit from the latest computing trend related to the netbook."
The iPod touch offers a pretty good alternative for those who don't want to be tied down to AT&T or add another wireless contract. I recently bought the iPod touch because I wanted an iPhone but couldn't justify adding another wireless plan on top of two contracts I already have with two different providers, one a broadband access plan and the other a family plan.
I'm considering buying Novatel Wireless' MiFi device (I've been trialing one, and it works well) to give me the WiFi connectivity I need to access the Internet when I'm away from my home WiFi access point. Of course, it's not that elegant of a solution given the fact that I would be carrying around three devices--the MiFi (which is a little bit thicker than a credit card), the iPod touch and my BlackBerry, but I have a rather large purse anyway. Then again, I wonder if I really need to spend on the MiFi since the times I use my iPod touch are when I have idle time at places that actually have free WiFi, such as my kids' karate studio and Chic-fil-A. And I'm not going to give up my BlackBerry so I won't miss important email messages when I'm on the go.
My good friend, a self-proclaimed cheapskate, uses her iPod touch as a primary way to surf the Web and check email. She's too cheap to buy broadband service to her home, but "splurged" on an iPod touch off of Craigslist. Interestingly, she always wants to meet at Chic-fil-A and other places where there's free WiFi.
While the iPhone has more functionality, being able to avoid another two-year contract was attractive to me, and I don't miss out on downloading new and innovative apps. I suspect, based on what Apple is expected to announce tomorrow, that is the case for countless other cheapskates. --Lynnette
Comments
Posted by touchy-feely | July 20, 2009 - 11:02am
"J.P. Morgan sees the iPod touch as a netbook of sorts."
I think ol' J.P. hit the bullseye! Is there another netbook around that costs $229, is 1/3 inch thick, weighs 1/4 pound, and you can put in your pocket? Pretty good "sort", eh?
Posted by Old Guy | July 20, 2009 - 12:17pm
Don't be so negative. You are not a cheapskate. You just cannot justify paying AT&T so much for internet access on the iPhone. I plan on getting a touch (new model) to replace the functionality of my old Palm IIIx.
Posted by Anonymous | July 20, 2009 - 12:26pm
Hi Lynette,
You might look at using something like an unlocked Nokia E71 or N97 with an app like JoikuSpot. Use your cell phone for your email fix. Use the JoikuSpot (www.joikushop.com) application to turn your cell phone itself in to a WiFi hotspot (uses the 3G network for back-haul and the phone's built in WiFi as the hotspot) for your PC, your iPod touch, etc. One less box and no extra bill:-)
Posted by Anonymous | July 20, 2009 - 12:31pm
This is HIGH SPEED PHONE SERVICE....Will go world wide!
www.mygvbiz.com/wellscommunications
Posted by Fred Stein | July 20, 2009 - 1:14pm
Interesting, but Lynette..
Not "Poor man's" nor "cheapskate". I know a fair number of people who have an BB and the iPod touch. Often because the BB is only device their employer pays, or their IT department supports. So everyone wins, especially Apple. Apple gets into the BB user base. They don't have wait for IT to approved the device - that will occur over time.
Posted by Brian Catt | July 20, 2009 - 1:18pm
Hi
Don't understand why an iPod touch is a poor man's iPhone? Can you talk to an iPod Touch? I don't think so. Its not a phone if you can't talk to it so how can it be a poor man's iPhone? Or are US users so shallow its a cheaper piece of Apple iconic kit they still can't actually use? If you can now talk to an IPod touch I withdraw my criticism.
BTW browsing the web on an iPod is too small for me, so I can't imagine what an IPod touch is like. Wait till Apple finally produce a proper desktop docking station - that's what the iPod needs, a docking station with screen and KB for grown ups so browsing is useable - the consumer PC in waiting. One day.....
Posted by Anonymous | July 20, 2009 - 1:34pm
I am seeing the kids getting the itouch so it's more of an entry point to the iphone when they move to adulthood
Posted by Esme Vos | July 20, 2009 - 7:04pm
I have an iPod Touch and a Nokia phone (with prepaid T-Mobile USA card which I swap out with my T-Mobile Netherlands SIM card when I am in Europe).
I would love to have an iPhone but I refuse to pay for AT&T's horrible cellular service. Just today at the Ferry Building in San Francisco, my business partner could only get AT&T's slow EDGE network on his new iPhone. The Ferry Building is not in a rural area, it's a couple of blocks from the SF Financial District!
I use Skype on my iPod Touch for voice calls and it works very well. Using my T-Mobile prepaid card, my monthly cellular phone bill is $12.50 (I top up the phone with $25 of credits every two months).
Posted by WilliamC | August 5, 2009 - 9:00am
Lynette - Let's be real. The only reason they are selling those Iphones dirt cheap is to keep stealing customers from their rivals. AT&T has to make Apple believe that every body wants one. What does Apple do in return??? - give them an extension on the exclusivity contract. Locking the other carriers out. We will see how the FCC is going to rule on this matter. We are not fooled by this $49 and $79 Iphone. It will be a matter of time before this phone is wrestled away from AT&T and given to other carriers to sell....Who didn't expect these two sharks to sell the Iphone for dirt cheap prices. It's when you buy a plan that the shock settles in...This is where the money generating revenue occurrs....
Posted by Anonymous | August 5, 2009 - 9:03am
Ipod touch - meet ZuneHd player with WiFi connection September 5th!!! At a retailer near you....Can't wait to get my hands on one of them...
Posted by Anonymous | August 5, 2009 - 9:10am
Go to Engadget.com. They show a docking station for the Iphone and it looks like a small battery sits behind it.....Just keep scrolling down the pictures and articles (a few pages) and you will come across it.
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