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Scott E. King
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10 months ago
in Apple Tuesday Let’s Rock Prediction and Poll on Investor in the Wilderness
What Apple really needs to do is progress the iPod Touch to it's logical conclusion by adding the Edge data option. Call it iPod Touch+Data or iPod Touch+Edge. It would still be a "Phone-less iPhone" but would now include the ability to access the Edge data network in addition to Wi-Fi with only a $15-20/mo data plan. So, keep your plain old cell phone, and add an "always connected" internet communication device/iPod. In doing so, Apple and AT&T could now lower the price of the iPod Touch+Data based on signing a 2-year contract for data services. AT&T is not getting anything out of iPod Touch users, so this is a great deal for AT&T, plus it would help them subsidize the build-out of their 3G & 4G network.
A subsidized 16GB iPod Touch+Data could sell for $99 with 2-year Data plan, and AT&T would kick in at least a $200 subsidy to Apple.
A subsidized 32GB iPod Touch+Data could sell for $199 with 2-year Data plan ($200 subsidy to Apple).
Continue selling the current iPod Touch with 32GB for $399 ($100 price drop, no Edge).
To appease customers add stereo speakers to the bottom of the iPod Touch, but to appease AT&T do not include a microphone so that it could never be used as a VoIP phone. Personally though, it would be nice if the iPod Touch gained both speakers and microphone.
At $99 the iPod Touch+Data would be a big seller. Also, have the option of pre-paying the entire 2-year data service (at a discount) so that anyone could give their loved one an always-connected iPod Touch without them having to worry about monthly fees or in-store activation, it makes a wonderful gift for the holidays. Then, offer iPod Touch data cards in retail outlets in 1-month, 3-month, 6-month, etc. denominations to extend data plans for those who want to pay data plans as a gift.
Then, in the Spring (but no later than next September) Apple should release an unsubsized version of the iPod Touch+Data which would include Edge but no data plan. The customer would then be free to choose a data plan from AT&T, T-Mobile, or other GSM provider (or choose no data at all and just do with Wi-Fi). But at that time all iPod Touches will include Edge capability. Then, Universities would be able to negotiate special data plan rates for their students by competing the GSM carriers. The same for businesses and their employees. Then, Apple would have the market for both SmartPhones and phone-less Mobile Internet Devices.
This is one scenario Apple could pursue, I'm sure there are dozens more. That's why Apple is such a great investment, not only do they deliver but there is so much opportunity for them to grow.
A subsidized 16GB iPod Touch+Data could sell for $99 with 2-year Data plan, and AT&T would kick in at least a $200 subsidy to Apple.
A subsidized 32GB iPod Touch+Data could sell for $199 with 2-year Data plan ($200 subsidy to Apple).
Continue selling the current iPod Touch with 32GB for $399 ($100 price drop, no Edge).
To appease customers add stereo speakers to the bottom of the iPod Touch, but to appease AT&T do not include a microphone so that it could never be used as a VoIP phone. Personally though, it would be nice if the iPod Touch gained both speakers and microphone.
At $99 the iPod Touch+Data would be a big seller. Also, have the option of pre-paying the entire 2-year data service (at a discount) so that anyone could give their loved one an always-connected iPod Touch without them having to worry about monthly fees or in-store activation, it makes a wonderful gift for the holidays. Then, offer iPod Touch data cards in retail outlets in 1-month, 3-month, 6-month, etc. denominations to extend data plans for those who want to pay data plans as a gift.
Then, in the Spring (but no later than next September) Apple should release an unsubsized version of the iPod Touch+Data which would include Edge but no data plan. The customer would then be free to choose a data plan from AT&T, T-Mobile, or other GSM provider (or choose no data at all and just do with Wi-Fi). But at that time all iPod Touches will include Edge capability. Then, Universities would be able to negotiate special data plan rates for their students by competing the GSM carriers. The same for businesses and their employees. Then, Apple would have the market for both SmartPhones and phone-less Mobile Internet Devices.
This is one scenario Apple could pursue, I'm sure there are dozens more. That's why Apple is such a great investment, not only do they deliver but there is so much opportunity for them to grow.
