Thursday, September 06, 2007

The New iPod Touch

I think the Touch is a revolutionary device, and I frankly get in line with the those who think the negativity in today's press and blogs is ridiculous and misses the point of this amazing piece of hardware.

This is the first device that has the ability to actually have movies and music streamed to it rather than be required to be tethered to a computer to receive content. Add a fully functional browser and you have an amazing new device whose functionality will set new standards for what can and can't be delivered over the air. How about taking your high school or college class over your iPod via Wi-Fi? On-line education is red hot and this plays right into that delivery mechanism. What about Vonage and Skype video conferencing? Streaming movies on airplanes rather than being forced to watch what the airline has supplied? To build off of the Starbucks idea, how about a store offering to let you shop at a brick and mortar store and then have the item ordered on-line, in your size and/or color, then shipped directly to your home. Ditto for gift buying.

I think the bigger story here is the surprising lack of leadership, engineering and vision from Microsoft and Palm. It was no coincidence to me that Microsoft lowered the price of the Zune by $50 yesterday to get them off the shelves. Who do you think will sell more product this holiday season: Apple or Microsoft? Hmmm, let me get back to you on that!

As for the price cuts on the iPhone, I was a bit shocked to see the iPhone reduced $200 and the 4 gb version discontinued. I know that I didn't buy an iPhone because I'm a current Verizon customer and know how valuable EVDO is for web access. Without it, the browser in the phone is badly crippled when it's away from a Wi-Fi connection. In addition, by the time the monthly fees were factored in, the total cost of the phone exceeded $2,300. That's a hefty price to pay and I decided to wait for gen2 of the iPhone before I reconsider it. Now that the Touch is available, I'm glad I did.

There are plenty of examples where people pay a premium at the release date of a product only to find it greatly reduced shortly thereafter. The Pontiac Soltice was selling for $6,000 over sticker when it was first released, now dealers hardly want to stock them since the demand is so low. Welcome to marketing in America!

To the gloom-and-doom folks, get over it. This is a new device for a new age and I've already put my order in for a Touch at the online store!

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