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Thursday, June 5, 2008

With iPhone 2 around the corner, what's in store for the iPod touch?

We're less than five days away from at least the announcement, and who knows... maybe the shipment of the next generation of Apple iPhone. We know iPhone SDK is coming as well, and we know the touch will share much of the same software functionality as the iPhone. Could that mean an iPod touch re-design on Monday as well? Take video, for example. If the iPhone is given the ability to record video, is that a function that could come to the touch too?

And if rumors of a $199 subsidized iPhone prove true, what happens to the touch price point? It can't be less than $199, or it would cut into iPod nano sales. More than $199, and why would someone buy a touch when there would be potentially more functionality in the new iPhone?

Apple has previously stated if a product is going to get cannibalized, they want it to get cannibalized by their own product, rather than someone else's. That may be true here too, but it just seems like the price points could make for a crowded product lineup between $200 and $300.

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