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Something's not right with the iPod

Written by Chris Tangora

Monday, 09 June 2008

As we all know the 3G iPhone was announced today, yippee. If you can't tell, I'm not all that excited. First there was almost no talk at WWDC about anything but iPhone from Steve Jobs. iPhone this, iPhone that. The keynote was almost entirely about an iPhone related product. Steve mentioned the Mac twice, once in the beginning with their three sides to Apple, then again when introducing the new .mac, me.com.

So I'm upset that the Mac took such a back seat. But what really bugs me is how far back the iPod took. There were two mentions of the iPod, again with the three sides of Apple and that iPod owners could pay $10 for the iPhone software. For being a three sided company, it sounded awfully once sided.

Then I went to store.apple.com and I got upset. The iPod is now more expensive upfront than the iPhone, and it has less features. An 8GB iPod cost you $299, that's $100 more than the 8GB iPhone, which has a GPS built into it. The 16GB iPod cost $399, while the 16GB iPhone cost only $299. WHAT HAPPENED TO THE IPOD STEVE! AT&T isn't sharing the revenue with Apple anymore, so why is the iPod taking such a hit compared to the iPhone? While the iPhone cost only $199 now, the contract with AT&T will cost you another $30 a month for the unlimited data plan (plus another $40 for voice). So the $199 iPhone will run you another $1680 over two years for a total of $1880. WOW! So why does the iPhone cost more, yet have less features?

So that is why I'm not buying an iPhone. Yes, it looks awesome. But it is not the Apple I know. The Apple I know doesn't leave the loyal fanatics high and dry for two straight WWDC's. Taking a look at Snow Leopard I'm a little worried. No new features and only fixing what is already there? Sounds like a gimmick to get more money. The one thing I am looking forward to is Exchange compatibility, right out of the box (FINALLY!). To bad they can't do that with the current Leopard instead.

Don Reisinger of IT World chimes in about the iPod as well.

The Washington Post chimes in about AT&T's press release on the new contracts.

Comments (9)

	11-06-2008 21:36
	Actually, the Mac is still a main money maker at Apple. Looking at the last quarter (released April 2008 here http://www.apple.com/pr/library/2008/04/23results.html). The Mac had a 54% revenue growth from the same quarter last year. The quarter before the Mac had 47% revenue growth. The two quarters before that had over 30% growth each quarter. The two quarters before that had 36% & 28% growth. That's a year and a half of strong double digit growth for the Mac. The Mac is still a major part of the Apple ecosystem. That big of a money maker deserves more attention by the parent company. Registered

ctan

	11-06-2008 21:07
	The Mac isn't dead, but what makes Apple money these days are the iPod and iPhone. Of course, once people buy those devices, they will see how wonderful they work and consider switching to a Mac if they are not Mac owners already. That said, I was rather disappointed in the keynote myself. They spent way too much time on the iPhone and it's soon to be released apps, but nothing on anything else. I would really like to see Apple do something to their Cinema monitor line. Now that they have dropped the iSight camera, they need to do something so that folks who buy a Mac Pro or Mac Mini can still get an iSight camera. I really wish they would reintroduce the iSight camera. It's the best Mac webcam out there. I really miss it. Guest

Dave M.

	10-06-2008 17:08
	Wow, the writer of the article goes on a 4 paragraph (justifiable) tirade about the iPhone, and what happens. All the comments on the blog are ABOUT THE F__KING IPHONE. Christ Tangora, I think you've completely proven your point. The Mac is dead, long live the macPhone. Guest

iRobot

	10-06-2008 12:14
	the shape of the backing is different, IIRC the 3g model is deeper, thats why it has a more rounded look, so it doesn't appear thicker... I personally like the all solid back v/s the one now. I am just hoping there is some sort of special paint on there that doesn't scratch so easily... Registered

oojacoboo

	10-06-2008 10:28
	With the price cut to the new model, I was wondering where the savings were coming from. Ah, I am happily chugging along with my 1st gen iPhone, on T-Mobile, paying $5.99 a month for unlimited data. I'm not too keen on the new plastic backing, either. Makes me wonder if it's possible to swap 'em out. I mean, if the rest is the same, why not? Registered

Antonio

	10-06-2008 07:37
	It's interesting that the Apple/AT&T contract was re-written to NOT share the revenues from the contracts. 1 year into a two year agreement and it was re-written? Something interesting there I'm sure. Maybe this is setting up the iPhone for an open market in a year. Registered

ctan

	10-06-2008 00:03
	early adopters enjoy adopting earlier than everyone else! If that's not enough of a reason then don't be an early adopter. Registered

krusher117

	09-06-2008 21:12
	You must feel quite honored. :) Registered

ctan

	09-06-2008 20:13
	dude, the iphone price is subsidized with an ATT instant rebate for a 2 year contract. Expect that to be a $200 dollar rebate as well. So, the price of the iphone is really 399 and 499... I know, b/c I got screwed into a 2 year agreement as a privilege to get to use ATT's wireless service and pay them 100+ every month. I am so grateful! Thanks ATT for giving me the opportunity. How about an upgrade incentive for all the early adopters/switchers? Registered

oojacoboo

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