Filed under: Analysis / Opinion, iPod Family, iPhone
iPhone versus iPod touch pricing: Say what?
What does it mean when a 16GB 3G iPhone costs about the same as an 8GB iPod touch? Is it the AT&T kickback economics finally coming into reality? Or are we going to see an iPod touch price drop sometime soon? Face it. The iPhone is just a better device than the iPod touch. And if you can get one cheaper? Why not. It has a built-in speaker and microphone too, assuming you can get past that activation screen.
So if you have the choice between buying one or the other, the iPhone is a really sweet alternative. And if the iPod touch comes down in price? Even better.
Get a WordPress.com Blog
![TUAW [Cafepress]](http://www.blogsmithmedia.com/www.tuaw.com/media/tuaw-cafepress-promo.png)
Reader Comments (Page 1 of 3)
Sean Brackeen said 3:27PM on 6-09-2008
As an iPod Touch owner, I'm kinda pissed. I paid $299 for this thing and I could have gotten an iPhone for less. WTF?
Reply
Josh said 3:30PM on 6-09-2008
Yeah, but hey at least you don't have data plans to pay for right?? Oh well, speaker and microphone, who needs em. You've still got a lot cooler of an iPod than most people.
FrankTheCrank said 3:43PM on 6-09-2008
I don't blame you, I would be pissed too.
I bought my 4G iPhone for $299, when they dropped the price. Then I did the month to month hack and canceled the first month. It was a glorified Touch at that point. But with speaker, microphone and camera.
Now an 8GB model with GPS....for $199. That's insane.
Andrew Wood said 4:06PM on 6-09-2008
But look at where you can buy the thing - in the UK you can only get it in places where you can buy an 02 contract - they're not selling these without a signature any more, so unless you're happy to sign up for two years, the touch is still the best option for you (or an old iphone - want mine?).
Dave said 4:16PM on 6-09-2008
How long ago did you buy it? Do you expect prices for new tech to never come down. Do you buy every product with the expectation that newer models with better features won't be on the market within months? If so, you're in some kind of bubble world where the real world of technology doesn't exist. I haven't bought a single computer related or gadget related item in the past 25 years that didn't have a better product out in 6 months at a better price.
Get over it.
Oneiroi said 12:23PM on 7-31-2008
I agree with Josh,
you're not paying the...what is it...at least 80 a month for 2 years for it.
Consider yourself saving around $2,000. That extra money brings down the cost just a bit for the iphone.
rdjl27 said 3:28PM on 6-09-2008
One contention: Two-Year Contract.
If you want to avoid the aforementioned beast, then the iPhone is out of the question (maybe). It looks like finally there may be some kind of lock down in terms of contract and purchasing (mostly up in the air at this point, but look at the wording on the Apple store, and iPhone website). Two year contract set at unknown pricing (3G data plan = ?) is a hell of a lot more expensive than an iPod Touch.
Reply
akira said 3:29PM on 6-09-2008
wheres the 32 gig iphone
Reply
Zane said 3:33PM on 6-09-2008
Wait until the end of summer. I'll bet a hundred bucks on the 16 gig being available at $199 and a new 32GB version coming in to replace it at the top end.
Adam said 3:29PM on 6-09-2008
Well, you do have to pay for the data plan and, you know, be on the AT&T network with an iPhone.
But this is all VERY STRANGE. It is not made any less strange by the following:
1. The Education Rebate Offer is TOTALLY nonsensical now.
2. The Touch software update - coming at the same time - will still cost $10 more.
WHAT.
This is basically a huge screw to people like me who wanted to use the rebate. Sure, you're still getting a free iPod, but now it's almost certainly going to drop in price... but I'm thinking that won't happen until the new ones are introduced in September.
This keynote was ridiculous. It was a fangasm for all the iPhone people and a pretty big nothing for anybody else. Anybody, that is, who doesn't want to shill out $99 for features that already exist on platforms, (Gmail, Flickr), used by more people.
Reply
conigs said 3:32PM on 6-09-2008
"This keynote was ridiculous. It was a fangasm for all the iPhone people and a pretty big nothing for anybody else."
I don't know. It is a DEVELOPER conference and all.
TVGenius said 4:20PM on 6-09-2008
Regardless, I think he pretty much summed it up. Other than barely mentioning Snow Leopard (and putting out a half-page press release) which apparently won't be out for a full year, it was all iPhone.
There's no 3G network within three hours of here. Everyone I know here who has AT&T hates them. Even the ones who bought iPhones the first day complain about it. So I don't want an iPhone.
I've been waiting months to get an iPod Touch, since surely they would update...
Pumapayam said 4:25PM on 6-09-2008
So do you have to pay $29.90 (January Update $19.95 + July App update $9.95)? or can you just skip the January Update and maybe there will be an 3rd party application for cheaper or free that covers the January Update appliations.
conigs said 3:29PM on 6-09-2008
"Is it the AT&T kickback economics finally coming into reality?"
Yes.
"Or are we going to see an iPod touch price drop sometime soon?"
Probably.
This is the problem with subsidies, everyone just expects everything to be cheaper. People were complaining before about how the iPhone should be $199 subsidized. (Some even said $99.) Now that it is, people are complaining that an unsubsidized piece of tech costs more than a subsidized one.
Reply
dropinthestream said 6:10PM on 6-09-2008
Damn, I just bought an iPod touch 32 gig!
At least i got it for $140 less on eBay...
Reply
akira said 3:30PM on 6-09-2008
july 11th....... mannnnnnnnnnnnnn
Reply
aplen22 said 3:31PM on 6-09-2008
Quite simply put, AT&T and apple are making droves of money off the plans and bills. Thus, they finally realize they can make their money off the 2 yr contracts and lower the price to attract more ppl.
Not to mention that some of us (especially in canada) still find the iPod Touch the only other option because we refuse to sign with certain carriers due to their disgusting lack of 3G coverage unless your standing in downtown *insert major city here*. In my opinion the canadian CDMA carriers have done a much better job of broadband implementation than Rogers ever will. 2009 can't come soon enough when we might see the next revision of the Iphone finally include a CDMA version (long overdue). If verizon hadn't screwed this up to begin with, we wouldn't have had this problem.
Reply
conigs said 3:34PM on 6-09-2008
"Thus, they finally realize they can make their money off the 2 yr contracts and lower the price to attract more ppl."
Um, I hate to break it to you but subsidies have been around for a long time. You don't think that all those free phones are actually free if you don't get the contract, do you?
Ashton Tibbitt said 3:49PM on 6-09-2008
hopefully by 2009 we'll have LTE and we won't have to worry about the GSM/CDMA debate since most carriers will be LTE...
Verizon (which is merging with Alltel to form the largest network in the US), will be using the same technology as AT&T. Does this mean that, if unlocking phones will still be possible, that you can really use the iPhone on ANY NETWORK IN THE FUTURE?!?!?!?
aplen22 said 4:38PM on 6-09-2008
@ conigs:
Duh, i work in the industry, i know that. I'm saying that given the response to the product NOW, they have decided to low the phone price due to the fact that they know ppl are willing to pay the higher bill price for it on a monthly basis.
I'm not sure if your in the US or Canada but up north, this is the reason that Data is finally catching on. Prices are dropping because there is greater mass adoption. Telus' 1st and 2nd Quarter earnings reflect this.