Back in May Apple revealed that it has sold over 100 million iPod Touch units since it was first introduced in 2007. Nearly half of all iPod sales are comprised of iPod Touches according to Apple. With the arrival of the iPhone 5C set to launch tomorrow, just what does this all translate to for the Touch?
MP3 Player vs. Smartphone:
Although the iPod Touch and iPhone 5C are in two different product categories, they do share some similar qualities both in terms of features and target audience. The first evidence in similarity is easy to spot, the bright bold colors from the Touch line are now found on the iPhone 5C. When it comes to features both devices share the same screen size, front and rear facing cameras (depending on model), and they both now run Apple’s iOS 7 operating system.
iPod Is The Gateway To An iPhone:
With Apple skipping out on upgrading the Touch lineup this year, the iPhone 5C couldn’t have arrived at anymore of a perfect time. Think about the millions of “tweens” who are about to get a smartphone for the first time. Most likely they already own and iOS device such as an iPad or iPod Touch, but perhaps at the time they were a bit too young for a full blown smartphone. As this generation gets set for a cell phone, making the jump to the $99 iPhone 5C is an easier purchase for parents, especially if their kids are already invested in the Apple ecosystem.
iPod Trades On The Rise:
Year over year iPod Touch trade-ins here at Gazelle have been steadily on the rise since 2010, and the data is even more evident come iPhone time. This year we witnessed a 73% increase in iPod Touch trades compared to last year around iPhone time. Since the product was added to Gazelle.com, the overall growth has been about 590% (2010-2013). With the pending arrival of the more expensive iPhone 5S, and no new update for the Touch, the iPhone 5C could become Apple’s secret weapon to capture kids before they veer off into affordable Android land.
iPhone 5C Is Not For Emerging markets, It’s For Kids:
Soon after the September 10th iPhone event, analysts realized that the iPhone 5C was never intended for emerging markets. Although the device carries a $99 2-year contract price, the hefty $549 contract free price on the iPhone 5C is about $150 over the budget for emerging markets. The 5C is just the new replacement for the iPhone 5S, plain and simple. With the housing all wrapped in bright bubbly hard plastic, the iPhone 5C not only cost less to produce, but renders the current iPod Touch as the new baby rattle for Apple.
(image courtesy of Apple)