Why Would Anyone Still Buy an iPod?

Today, April 23, 2013 Apple reported earnings and they stated that they sold 5.6 million units of the Apple iPod in the last three months. Yes. A total of 5.6 million units were sold. Are people still buying the Apple iPod? It is hard to believe with the iPad and iPhone that anyone would still buy an iPod. When looking at the prices of some of these iPod models there is absolutely no reason to make this purchase but it seems to be the case at 5.6 million people think so.

Isn't the iPhone an iPod?

When the Apple iPhone came out I thought that this would be the death of the iPod. When looking at historical trends of sales of the iPod units it is quite obvious that they are down but they still have not died. The reason I thought the Apple iPhone was going to kill the iPod is that it combines your music player with your telephone. In fact, some have argued that the iPhone is no longer a telephone. Just the other day I was talking to an individual that said that they had purchased an iPhone over two months ago and they had never actually talked on the phone. This is getting more and more common as people are using this as a computing device or a gaming system rather than an actual phone.

When going to any cellular service provider most people will find that they can buy an iPhone at a very affordable price with a two year contract. The brand-new iPhone 5 will only cost $200 when you sign a two-year contract and if you decide to get the iPhone 4 it will likely be free with a two-year contract. This means that anyone who is looking for a smart phone can potentially get it for free. Why on earth would you buy an iPod if you can get an iPhone 4 for free?iPod Touch

Obviously there is still a market for the iPod but I firmly believe that it is not in the United States. It may be true that some other countries that do not have strong cell phone providers are where most of the sales are. I have not looked into all the numbers but it makes sense that individuals that do not have cell phone service will still want to listen to music or play games through acts. It is also the case that when you have WiFi you can use the iPod Touch basically as an iPhone with phone calls.

Will Apple Continue to Make the iPod?

Many have wondered just how long Apple will continue to make the iPod. It is hard to believe that this product is something that is going to continue to provide income as the newer model iPhone's come out. If you look on Craigslist or any other classified ad website you can likely find an iPhone 3GS for $20. There is no reason to buy a brand-new iPod for $100 if you can get an iPhone 3GS or even an iPhone 4 for free with a contract. Unless you live in an area where there is absolutely no cell phone coverage I do not see a reason why you would even want to consider buying an iPod.

There are some athletes that use iPods for keeping time and tracking the distances they run. That said, the same can be done with almost every single iPhone endurance app. Most of these apps are completely free and you do not need to buy an iPod to use the services. This makes me wonder what Apple will come up with next and it may be the iWatch. Rand Wilson and I have had many conversations about this particular type of product and it might be worth it for athletes as they phase out the iPod.

Will Apple Do Something New?

Most people know that I am not a huge fan of Apple as I feel as if their products are a little too expensive; look at the prices of the iPod and MacBook Pro. This is especially true when you are not signing a two-year contract with a cell phone provider. When looking for a non contract iPhone 5 most people are going to pay about $900. If you are looking for a non contract iPhone 4S. you are going to pay about $600. I purchased my Google Nexus 4 for only $299 non contract.

This is the best Android phone on the market and I could take it to any cell phone provider and get it activated. This is very important for me because I do not want to be under a contract when it comes to the cell phone provider. I have signed two-year contracts in the past and not been able to get out of them. Therefore, I have no desire to do so in the future. This is why I ask will Apple do something new? Something they may decide to do is create a non contract phone for a lower price. This would be very attractive for people looking to go to a unique provider and pay only $40 a month or $45 a month for their service.

When going to Wal-Mart and looking for a straight talk wireless phone individuals will have to pay $900 for the iPhone 5. If Apple is willing to drop the price on a newer model iPhone 5 to less than $200 they could sell tons of units to individuals looking to get a Straight Talk contract. Unfortunately, most people wanting a $45 a month cell phone plan are not willing to spend $900 on a smartphone. This is a market that Apple has not Into but I am not sure they are willing to do so.

Apple has been hitting the high end market for over a decade now and they have been doing an amazing job of it. So much so that they are one of the best companies when it comes to producing profits off their products. Unfortunately, this can only go so far and they are seeing that right now is their stock is dropping $700 a share down to $400 a share. They may need to tap into a new market and maybe getting rid of the iPod and selling a much cheaper iPhone is that market.

   

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