If you haven’t already heard, Apple has given their iPod touch a minor update for
the first time in four years.
Its processor was updated from the A8 which first appeared in the iPhone 6, to the A10,
giving it the same performance as the iPhone 7.
Also, Apple added an option for 256GB of storage, which means this 7th gen iPod touch has the
highest capacity of any iPod ever, including the Classic which offered 160GB of storage
at its peak.
Now that may not sound like a very news-worthy update, but what most people were surprised
by aren’t the improvements made to the iPod, but that the iPod touch was updated at all,
since rumors surrounding its discontinuation have been circulating for years.
So why exactly is Apple still selling iPods in 2019?
Well that’s exactly what we’re going to find out.
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Now the iPod has played a very significant role in Apple’s history.
It was introduced in 2001 and completely changed the way people thought about music players.
They went from cheap plastic devices that were frustrating to use and only held twenty
or thirty songs, to beautifully designed devices that were delightful to use and held thousands
of songs.
The iPod began experiencing incredible sales success with the iPod mini, which came in
colors and sold for $250.
Apple then replaced the iPod mini with the nano in 2005 which became even more affordable
at just $150.
Now for those people in their 20’s, you probably remember how popular iPods were in
middle and high school.
It seemed like everybody had one despite the fact that very few people owned Macs or were
familiar with Apple as a brand.
But because of the iPods success, something called the halo effect caused more and more
people to become interested in the other products Apple had to offer.
This helped drive sales of the MacBook and iMac, and paved the way for the iPhone’s
success in 2007.
Now I say all of that to demonstrate just how crucial of a product the iPod was to Apple’s
overall success as a company.
And when a product has that much historical significance, companies typically have a hard
time moving on to something else to replace it.
It’s why Kodak filed for bankruptcy in 2012 when they couldn’t shift from traditional
film to digital photography.
Apple has always recognized the importance of replacing, or cannibalizing, your own products
with new ones.
Because if you don’t do it, someone else will.
And that’s exactly what they did to the iPod.
When Apple released the iPhone is 2007, they weren’t shy about telling customers that
the iPhone had an iPod built-in.
Which signaled to customers that they shouldn’t be buying an iPod if they plan on getting
an iPhone.
And although that may sound like a bad business strategy to some executives, Apple knew they
could convince customers to buy the iPhone if it had a high perceived value, and marketing
it as the best phone ever built plus the best iPod ever made, customers were happy to hand
over the $500 that Apple demanded.
Now ever since the iPhone has been around, iPod sales have been on the decline, which
is exactly what Apple expected.
So it didn’t come as much of a surprise when the iPod classic was discontinued in
2014, and the iPod nano and shuffle were discontinued in 2017.
But what some people found odd was the lingering presence of the iPod touch.
And because it hadn’t received an update in four years, many expected it to also be
discontinued.
But now we know that isn’t the case, with Apple deciding to give it a small upgrade
in preparation of iOS 13.
So what’s special about the iPod touch that’s preventing it from being discontinued?
After all, there are several valid reasons you could give as to why the iPod touch should
not longer exist.
One of the most popular being that virtually everyone has a smartphone these days.
In fact, According to the Pew Research Center, seventy-seven percent of Americans owned a
smartphone as of 2017.
And that number is part of the reason why so many products like MP3 players and even
point and shoot digital cameras have been made obsolete.
With a smartphone you can listen to all the music you want through Apple Music or Spotify,
and you don’t have to spend the extra time downloading songs and transferring them to
your device.
So it’s easy to see why buying an MP3 player like the iPod would just be redundant and
unnecessary for most people today.
It’s also worth noting that iPods are making Apple less money than ever before.
They actually used to have their own category on Apple’s revenue reports, but now the
iPod has been delegated to the "Wearables, Home, and Accessories" category which contains
products like the Apple TV and HomePod.
Now that category has been generating a large chuck of revenue for Apple in recent years
thanks to the success of the Apple Watch and AirPods, but no one really knows how well
the iPod touch is selling since Apple never mentions it in their reports.
So we can only assume it’s popularity is dwindling.
Lastly, something I’ve read a lot on forums discussing the iPod touch is how outdated
its technology is.
Its form factor hasn’t been updated since 2012, its using the same display as the iPhone
5, and its processor, despite the update, is still going on three years old.
So why would Apple, a company that prides itself on being at the forefront of technological
innovation, want to keep an aging product like iPod touch around?
Well, I’m going to tell you exactly why.
But first, I want to point out a unique quality of the iPod touch that I think is often overlooked.
And that is, it’s one of the only products to’ve not been touched by Apple’s price
hikes.
The iPod touch starts at $200, which is the same price point as in 2012.
If iPhones had been priced similarly, the flagship model would start at $650 today instead
of $1,000.
And this is important to understand since it proves Apple is intentionally trying to
keep the iPod touch as affordable as possible.
Now let’s get into all the reasons why Apple is continuing to sell the iPod touch in 2019.
And something you might be asking yourself is, why the iPod touch?
Why wouldn’t apple also continue to sell the other iPod models like the nano and classic?
And the answer has everything to do with iOS.
The nano, classic, and shuffle all ran their own custom operating systems design specifically
for them.
And while this was okay for users, it wasn’t the best business strategy for Apple.
Because when your most popular and profitable product, the iPhone, is running iOS, you want
everyone to become familiar with that operating system so they’re more likely to buy an
iPhone in the future.
And by discontinuing the iPod shuffle, nano, and classic, Apple has forced anyone shopping
for an iPod to buy the touch, drawing them into the iOS ecosystem and therefore increasing
the likelihood of them choosing iPhone when shopping for a smartphone later on.
And this type of long-term approach to business is very characteristic of Apple.
They’ve always been much more concerned with the lifetime value of a customer instead
of the value of a single transaction.
That’s why employees in Apple’s retail stores don’t try to up-sell you and don’t
make a commission.
Their purpose is to find the best product for your circumstance so you’ll be happy
with your purchase and come back to Apple in a few years when you want a new smartphone
or notebook.
So the iPod touch is Apple’s most affordable iOS device, and the only iPod that ever ran
iOS, which makes it ideal for many unique customers like, for example, children.
Most young kids use an intermediate device like an iPad or iPod before they’re old
enough to have a smartphone.
And if you know anything about marketing, it’s that children are the best customers.
They beg their parents for the item they want, and are typically loyal to familiar brands
into their teenage years and even adulthood.
So if Apple can get an iOS device into the hands of young kids as early as possible,
it’ll likely pay off big time in the long run, since they’ll likely choose iPhone
as their first smartphone and perhaps even a MacBook or Apple Watch as they become entrenched
in Apple’s ecosystem.
So you can see why Apple isn’t concerned about the iPod touch making them a lot of
money today, they’re more focused on attracting long term customers that are introduced to
the brand through an affordable and accessible device like the iPod.
But it isn’t only children who’re ideal iPod touch customers.
It’s also a great device for international markets like China and India where iPhones
may be considered too expensive.
Another reason to keep the iPod touch around is its use in commercial settings.
I’ve actually been to restaurants where waitstaff would use an iPod touch to enter
orders instead of writing it down on a notepad.
And I’m sure there are countless examples of iPods being used in similar business situations.
But perhaps the most popular way the iPod touch is used today is as a dedicated music
player.
Because despite the vast majority of people owning a smartphone, there are those prefer
having a device for the sole purpose of listening to music.
In fact, when the iPod classic was discontinued in 2014, its resale price on eBay skyrocketed
to $1,000 at its peak.
Demonstrating just how much demand there still was for high capacity iPods.
And although it may not make much sense to younger people who are used to streaming music,
many people own a music collection that they’ve accumulated throughout their life before music
streaming was even around.
And putting their entire collection on an iPhone probably wouldn’t leave much storage
space left over for other things like apps and photos.
So then buying a dedicated music player like the iPod touch becomes a more reasonable option.
Not to mention to saves your iPhone some battery life and allows you to keep your music collection
exactly where you want it.
For example if you always listen to music in your car, just keep your iPod connected
and your music is ready to go right when you get in.
If you only listen at work then you can keep your iPod at your desk and never worry about
messing around with your iPhone.
And we can’t overlook that fact that the iPod touch still has a headphone jack.
Which would be a huge convenience when connecting to your favorite headphones or speakers.
So clearly there are good reasons for Apple to keep the iPod touch around for the time
being, although its future remains uncertain.
Will the iPod touch ever be redesigned?
Or will Apple only update its processor every few years to keep it compatible with the latest
version of iOS?
No one can say for sure.
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Alright guys thanks for watching and I’ll see you next time.