Will the iPhone cannibalize iPod sales? Or vice versa?

Yesterday, Steve Jobs introduced the iPhone. It is clearly the next generation of iPod. It's the full-screen video iPod we've waited for. It's the full-color fully-designed interface we've waited for. It's the fully-connected wifi and bluetooth device we've waited for. And that doesn't even mention the built in speakers and microphone.

So why does it have to be an iPhone? Surely there's a huge market out there who wants all these features but who doesn't want the Cingular piece of the action. Of course, many of you will rightly point out that one can purchase the iPhone, maybe even use the iPhone to good effect, without using the phone itself. The included two year contract is a bit of a stumbling block, especially if monthly charges (which I'm still really unclear about) apply.

So why not offer a phone-less iPod? It doesn't have to wait for FCC approval except insofar as any Bluetooth or WiFi device might need some paperwork done. Why not sell a basic "true fullscreen video iPod" at the $299 price point that removing the phone hardware might allow, to the large market of iPod upgraders who'd jump on buying one like a starving Georgia Tech student on barbeque?

My guess is that introducing a phone-less iPod would cannibalize early sales of the iPhone. Of all the goodies introduced about the phone, it's the phone component that's the least glamorous. Sure, a lot of us would pay a premium to carry fewer gadgets in our pockets. Combining the iPod and the phone and a lot of the PocketPC features makes sense--and I tell you as a PocketPC user, that the iPhone does not score too well on the PocketPC range of capabilities--but it also takes a lot of choice out of the equation for those of us under existing phone contracts who are looking for a better iPod and not necessarily an iPhone.

So when do we see an actual G6 iPod sans the phone connectivity? Your guess is as good as mine.

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Yesterday, Steve Jobs introduced the iPhone. It is clearly the next generation of iPod. It's the full-screen video iPod we've waited for....

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Mossdaddy

I want the iPhone form factor with more storage and GPS. Storage and a screen for photos so I can see more than on the back of my slr. GPS to get me around the country side. Ditch the phone and the stupid camera.

I think a non phone version may come when 20G flash memory gets cheap enough to replace the hard drives.

January 11 2007 at 1:50 PM Report abuse Permalink rate up rate down Reply

I am a Compliance Engineer, which means I work on products to meet the FCC and International Regulatory Requirements.

A phone-less iPod version of the iPhone would still need FCC approval. Having Bluetooth and WiFi is not just a matter of paperwork.

January 10 2007 at 11:57 PM Report abuse Permalink rate up rate down Reply

Clair

I doubt it. In my situation, I "need" an iPod before I "need" the iPhone. I've a 1st gen 2gb Nano and an 80gb iPod is in my future. Hopefully they update them and get even better battery life. :-D

January 10 2007 at 10:12 PM Report abuse Permalink rate up rate down Reply

Josh

I thought this phone was a really great product until I learned that there will be no public API for development and not allow 3rd party applications to be installed on it. I have no intention of buying one now.

January 10 2007 at 6:49 PM Report abuse Permalink rate up rate down Reply

Corey

I think with the next generation of Apple (30+ years) they are merging our digital world. They're expanding on the ease of us concept by enabling every person to carry one less thing. Most people carry at least two major electronics with them: an iPod and a cell phone. It only makes sense they would one day merge. Their are downfalls for what's to come, mainly the exclusive carrier deal. We all cry complaints now, but 5 months from now the praises will come.

January 10 2007 at 4:23 PM Report abuse Permalink rate up rate down Reply

Darrell

I would rather keep my cell phone and have a ZUNE than switch to Cingular!!!!

January 10 2007 at 4:14 PM Report abuse Permalink rate up rate down Reply

Wayne

There is a lot of talk on various sites about the iPhone cannibalizing iPod sales. I think what everyone is missing is that if Apple _didn't_ do this, then other phones would cannibalize the iPod market. Other phones are becoming more and more capable for the music market, and in many cases people just can't justify carrying two devices any more.

I put my thoughts on this up at http://anonymouslemming.blogspot.com/2007/01/why-apple-needs-to-do-phone.html a couple of hours before the announcement yesterday.

January 10 2007 at 4:12 PM Report abuse Permalink rate up rate down Reply

Gordon

I too would prefer and iPhone Nano. Much nicer form factor, much more useful for the average person. I'm most disappointed in the exclusive Cingular deal. I want an unlocked phone that I can use on whatever (GSM) network I prefer. As it is, I'll probably just buy an updated Nano from the Apple Store and a new MOTO from eBay.

January 10 2007 at 3:52 PM Report abuse Permalink rate up rate down Reply

Dick

What if you already have a contract with Cingular? Can you switch or just buy the new phone and use your existing plan?

January 10 2007 at 2:54 PM Report abuse Permalink rate up rate down Reply

ThePete

There is no way in HELL I'm replacing my 60 gig 5g with this iPhone-thing. The widescreen is totally wasted on a device that can only hold 8 movies (encoded at a decent rate). Call me when there's a widescreen iPod with a *decent* amount of storage and then we'll talk about price.

Phone functions? I already *have* a phone and guess what--it plays mp3s, videos and SHOOTS videos and lets me surf the 'net and so on and so on.

Give me something I don't already have, Steve--a widescreen iPod.

January 10 2007 at 1:26 PM Report abuse Permalink rate up rate down Reply