Apple Discounts iPhone, Launches Identical Media Player

In an odd, strategically-I-don’t-know-what-the-hell-they-were-thinking type of move, Apple today announced a new iPod MP3 player that is identical to the iPhone (but without the phone), a $200 price cut on the 8GB iPhone handset, and the complete and utter destruction of the 4GB model.

No wonder Apple’s stock chart for today looks something like this:

Crazy. The new music player, called the iPod Touch, looks almost identical to the current iPhone device and has the same 3.5 inch touch-screen, as well as wi-fi. It also comes in two configurations: an 8GB ($299) and 16GB model ($399).

One new feature that made it to the Touch: the ability to download songs from any wi-fi enabled Starbucks. Starting Oct. 2 in select markets (New York and Seattle), by next year every Starbucks in the nation should be iPod Touch-friendly.

Of course, the real “huh?” aspect at the media event concerned the popular iPhone. Apple plans to phase out the 4GB model handset, while also reducing the price of the 8GB model to $399. In addition, the iTunes store will begin selling ringtones for the device for 99 cents + 99 cents for the actual song.

Could the iPhone really not be selling as well as originally thought? Investors seemed to think so, sending shares of Apple stock down almost five percent by the end of the day.

Other iPod media players unveiled at the media event included a new Nano with a larger screen and the ability to play videos and games.

This entry was posted on Wednesday, September 5th, 2007 at 3:37 pm and is filed under Wireless Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.