Why Is Apple Still Selling iPods

The iPod Touch Update: A Sign of Apple's Strategic Decision to Keep a Legacy Product Alive

Apple has given their iPod touch a minor update for the first time in four years, a move that may not seem like a significant development at first glance. However, this update is actually a surprise given the rumors surrounding its discontinuation. In recent years, there have been several instances where Apple decided to discontinue certain products, including the iPod Classic in 2014 and the iPod nano and shuffle in 2017. So, why did Apple decide to keep the iPod touch alive?

The iPod has played a very significant role in Apple's history, dating back to its introduction in 2001. The device was revolutionary at the time, offering a user-friendly interface and holding thousands of songs. Its success can be attributed to the "halo effect," where people who were already familiar with Apple products began to become interested in other offerings as well. This led to increased sales of the MacBook and iMac, paving the way for the iPhone's success in 2007.

Apple has always recognized the importance of replacing or cannibalizing its own products with new ones. When the iPhone was released in 2007, Apple didn't shy away from telling customers that the iPhone had an iPod built-in. This move was a deliberate attempt to convince customers to buy the iPhone by marketing it as the best phone ever built plus the best iPod ever made. The strategy seemed to work, and since then, iPod sales have been on the decline.

So, what makes the iPod touch special enough to prevent its discontinuation? One of the most popular reasons is that virtually everyone has a smartphone these days. According to the Pew Research Center, 77% of Americans owned a smartphone as of 2017. With smartphones, people can listen to all their music through Apple Music or Spotify and don't need to spend extra time downloading songs and transferring them to their device. This makes buying an MP3 player like the iPod redundant and unnecessary for most people today.

Another factor contributing to the iPod touch's survival is its high storage capacity. The latest model now offers up to 256GB of storage, which is the highest capacity ever offered by any iPod. This is significant because it appeals to users who need more storage space for their music library or other files.

The fact that Apple decided to update the iPod touch before releasing iOS 13 suggests that they are trying to keep this product relevant in a market where smartphones have become the dominant force. By offering an updated version of the iPod touch, Apple is sending a signal that it still values its legacy products and wants to provide users with a reliable and affordable music player option.

While the iPod touch may not be as popular as it once was, its continued existence is a testament to Apple's strategic decision-making process. By keeping this product alive, Apple can ensure that it remains relevant in the market and continues to provide value to its customers. Whether or not this move will ultimately benefit the company financially remains to be seen, but one thing is certain: the iPod touch has become an integral part of Apple's history and legacy.

The impact of the iPod on Apple's success cannot be overstated. The device played a crucial role in shaping the company's strategy and marketing efforts. Its influence can still be felt today, with many of Apple's other products benefiting from its legacy. By understanding the significance of the iPod and how it has contributed to Apple's success, we can gain a deeper appreciation for the company's approach to product development and customer engagement.

In conclusion, Apple's decision to update the iPod touch is a significant move that demonstrates the company's commitment to preserving its legacy products. While the device may not be as popular as it once was, its continued existence ensures that Apple remains relevant in the market and continues to provide value to its customers. As we look to the future, it will be interesting to see how Apple chooses to evolve its product lineup and balance its focus on new technologies with a commitment to preserving its legacy products.

"WEBVTTKind: captionsLanguage: enIf you haven’t already heard, Apple hasgiven their iPod touch a minor update forthe first time in four years.Its processor was updated from the A8 whichfirst appeared in the iPhone 6, to the A10,giving it the same performance as the iPhone7.Also, Apple added an option for 256GB of storage,which means this 7th gen iPod touch has thehighest capacity of any iPod ever, includingthe Classic which offered 160GB of storageat its peak.Now that may not sound like a very news-worthyupdate, but what most people were surprisedby aren’t the improvements made to the iPod,but that the iPod touch was updated at all,since rumors surrounding its discontinuationhave been circulating for years.So why exactly is Apple still selling iPodsin 2019?Well that’s exactly what we’re going tofind out.This is Greg with Apple Explained, and ifyou want to help decide which topics I cover,make sure you’re subscribed and these votingpolls will show up in your mobile activityfeed.Now the iPod has played a very significantrole in Apple’s history.It was introduced in 2001 and completely changedthe way people thought about music players.They went from cheap plastic devices thatwere frustrating to use and only held twentyor thirty songs, to beautifully designed devicesthat were delightful to use and held thousandsof songs.The iPod began experiencing incredible salessuccess with the iPod mini, which came incolors and sold for $250.Apple then replaced the iPod mini with thenano in 2005 which became even more affordableat just $150.Now for those people in their 20’s, youprobably remember how popular iPods were inmiddle and high school.It seemed like everybody had one despite thefact that very few people owned Macs or werefamiliar with Apple as a brand.But because of the iPods success, somethingcalled the halo effect caused more and morepeople to become interested in the other productsApple had to offer.This helped drive sales of the MacBook andiMac, and paved the way for the iPhone’ssuccess in 2007.Now I say all of that to demonstrate justhow crucial of a product the iPod was to Apple’soverall success as a company.And when a product has that much historicalsignificance, companies typically have a hardtime moving on to something else to replaceit.It’s why Kodak filed for bankruptcy in 2012when they couldn’t shift from traditionalfilm to digital photography.Apple has always recognized the importanceof replacing, or cannibalizing, your own productswith new ones.Because if you don’t do it, someone elsewill.And that’s exactly what they did to theiPod.When Apple released the iPhone is 2007, theyweren’t shy about telling customers thatthe iPhone had an iPod built-in.Which signaled to customers that they shouldn’tbe buying an iPod if they plan on gettingan iPhone.And although that may sound like a bad businessstrategy to some executives, Apple knew theycould convince customers to buy the iPhoneif it had a high perceived value, and marketingit as the best phone ever built plus the bestiPod ever made, customers were happy to handover the $500 that Apple demanded.Now ever since the iPhone has been around,iPod sales have been on the decline, whichis exactly what Apple expected.So it didn’t come as much of a surprisewhen the iPod classic was discontinued in2014, and the iPod nano and shuffle were discontinuedin 2017.But what some people found odd was the lingeringpresence of the iPod touch.And because it hadn’t received an updatein four years, many expected it to also bediscontinued.But now we know that isn’t the case, withApple deciding to give it a small upgradein preparation of iOS 13.So what’s special about the iPod touch that’spreventing it from being discontinued?After all, there are several valid reasonsyou could give as to why the iPod touch shouldnot longer exist.One of the most popular being that virtuallyeveryone has a smartphone these days.In fact, According to the Pew Research Center,seventy-seven percent of Americans owned asmartphone as of 2017.And that number is part of the reason whyso many products like MP3 players and evenpoint and shoot digital cameras have beenmade obsolete.With a smartphone you can listen to all themusic you want through Apple Music or Spotify,and you don’t have to spend the extra timedownloading songs and transferring them toyour device.So it’s easy to see why buying an MP3 playerlike the iPod would just be redundant andunnecessary for most people today.It’s also worth noting that iPods are makingApple less money than ever before.They actually used to have their own categoryon Apple’s revenue reports, but now theiPod has been delegated to the \"Wearables,Home, and Accessories\" category which containsproducts like the Apple TV and HomePod.Now that category has been generating a largechuck of revenue for Apple in recent yearsthanks to the success of the Apple Watch andAirPods, but no one really knows how wellthe iPod touch is selling since Apple nevermentions it in their reports.So we can only assume it’s popularity isdwindling.Lastly, something I’ve read a lot on forumsdiscussing the iPod touch is how outdatedits technology is.Its form factor hasn’t been updated since2012, its using the same display as the iPhone5, and its processor, despite the update,is still going on three years old.So why would Apple, a company that pridesitself on being at the forefront of technologicalinnovation, want to keep an aging productlike iPod touch around?Well, I’m going to tell you exactly why.But first, I want to point out a unique qualityof the iPod touch that I think is often overlooked.And that is, it’s one of the only productsto’ve not been touched by Apple’s pricehikes.The iPod touch starts at $200, which is thesame price point as in 2012.If iPhones had been priced similarly, theflagship model would start at $650 today insteadof $1,000.And this is important to understand sinceit proves Apple is intentionally trying tokeep the iPod touch as affordable as possible.Now let’s get into all the reasons why Appleis continuing to sell the iPod touch in 2019.And something you might be asking yourselfis, why the iPod touch?Why wouldn’t apple also continue to sellthe other iPod models like the nano and classic?And the answer has everything to do with iOS.The nano, classic, and shuffle all ran theirown custom operating systems design specificallyfor them.And while this was okay for users, it wasn’tthe best business strategy for Apple.Because when your most popular and profitableproduct, the iPhone, is running iOS, you wanteveryone to become familiar with that operatingsystem so they’re more likely to buy aniPhone in the future.And by discontinuing the iPod shuffle, nano,and classic, Apple has forced anyone shoppingfor an iPod to buy the touch, drawing theminto the iOS ecosystem and therefore increasingthe likelihood of them choosing iPhone whenshopping for a smartphone later on.And this type of long-term approach to businessis very characteristic of Apple.They’ve always been much more concernedwith the lifetime value of a customer insteadof the value of a single transaction.That’s why employees in Apple’s retailstores don’t try to up-sell you and don’tmake a commission.Their purpose is to find the best productfor your circumstance so you’ll be happywith your purchase and come back to Applein a few years when you want a new smartphoneor notebook.So the iPod touch is Apple’s most affordableiOS device, and the only iPod that ever raniOS, which makes it ideal for many uniquecustomers like, for example, children.Most young kids use an intermediate devicelike an iPad or iPod before they’re oldenough to have a smartphone.And if you know anything about marketing,it’s that children are the best customers.They beg their parents for the item they want,and are typically loyal to familiar brandsinto their teenage years and even adulthood.So if Apple can get an iOS device into thehands of young kids as early as possible,it’ll likely pay off big time in the longrun, since they’ll likely choose iPhoneas their first smartphone and perhaps evena MacBook or Apple Watch as they become entrenchedin Apple’s ecosystem.So you can see why Apple isn’t concernedabout the iPod touch making them a lot ofmoney today, they’re more focused on attractinglong term customers that are introduced tothe brand through an affordable and accessibledevice like the iPod.But it isn’t only children who’re idealiPod touch customers.It’s also a great device for internationalmarkets like China and India where iPhonesmay be considered too expensive.Another reason to keep the iPod touch aroundis its use in commercial settings.I’ve actually been to restaurants wherewaitstaff would use an iPod touch to enterorders instead of writing it down on a notepad.And I’m sure there are countless examplesof iPods being used in similar business situations.But perhaps the most popular way the iPodtouch is used today is as a dedicated musicplayer.Because despite the vast majority of peopleowning a smartphone, there are those preferhaving a device for the sole purpose of listeningto music.In fact, when the iPod classic was discontinuedin 2014, its resale price on eBay skyrocketedto $1,000 at its peak.Demonstrating just how much demand there stillwas for high capacity iPods.And although it may not make much sense toyounger people who are used to streaming music,many people own a music collection that they’veaccumulated throughout their life before musicstreaming was even around.And putting their entire collection on aniPhone probably wouldn’t leave much storagespace left over for other things like appsand photos.So then buying a dedicated music player likethe iPod touch becomes a more reasonable option.Not to mention to saves your iPhone some batterylife and allows you to keep your music collectionexactly where you want it.For example if you always listen to musicin your car, just keep your iPod connectedand your music is ready to go right when youget in.If you only listen at work then you can keepyour iPod at your desk and never worry aboutmessing around with your iPhone.And we can’t overlook that fact that theiPod touch still has a headphone jack.Which would be a huge convenience when connectingto your favorite headphones or speakers.So clearly there are good reasons for Appleto keep the iPod touch around for the timebeing, although its future remains uncertain.Will the iPod touch ever be redesigned?Or will Apple only update its processor everyfew years to keep it compatible with the latestversion of iOS?No one can say for sure.Now if you want to give your iPhone a freshnew look, check out skinit.com.They have a huge selection of product skinsto choose from.I’ve actually been using the Aqua Blue Chameleonskin for my iPhone X and love how the coloractually changes shades depending on the lightsource and angle.They also have skins for AirPods, iPads, Galaxyphones, and even game consoles.And when it comes to designs, Skinit is officiallylicensed by brands like Disney, Marvel, theNFL, NBA, and more.So check out skinit.com to find your favoriteskin and use code GREG25 to get 25% off yourorder.Alright guys thanks for watching and I’llsee you next time.\n"