Apple cuts prices on iPod Touch line, refreshes 16GB model

Tech giant adds a new rear-facing camera and four new colors to its 16GB model, bringing it to parity with higher-tier versions.

ipod-touch.jpg
Apple

Apple on Thursday cut prices across the board for its iPod Touch line, trimming the cost of the music players by as much as $100.

Its top-tier 64-gigabyte iPod Touch is now $299, down from $399. The 32-gigabyte version is now $249 from $299, and the 16-gigabyte model is $199 from $229.

In the UK, the 64GB model's new price is £249, while the 32GB now costs £199, and 16GB costs £159.

In Australia, the 64GB will set you back AU$349, with the 32GB priced at AU$299 and the 16GB at AU$249.

The tech giant also beefed up the lowest-tier 16GB version to be in parity with the 32GB and 64GB models, giving the 16GB device a new rear-facing camera and adding four new colors: pink, yellow, blue and (PRODUCT) Red -- part of the broader (RED) campaign that raises money to combat AIDS. The 16GB version previously only came with a front-facing camera and was available in silver and space gray.

The price cuts come amid lagging sales for Apple's iPod, once its flagship product line before the arrival of the iPhone. Sales from the iPod line plunged more than 50 percent in the last reported fiscal quarter, and are a fraction of the sales that the iPhone or even iPad bring in.

So it's no surprise Apple would attempt to goose sales with a price cut and a retooled low-end model, particularly as component costs have come down on devices that haven't had a dramatic update in nearly two years. The entire iPod Touch lineup now features that 5-megapixel camera with 1080p HD video recording, 4-inch Retina display, and a front-facing camera, as well as all six colors.

While the iPod Touch isn't close to being one of Apple's big money-makers, it remains an option as a lower-priced, simpler device for games, media, and music. Also, while iPod sales have been declining in recent years, the device continues to bring in billions of dollars in revenue for Apple. In fiscal 2013, Apple sold 26.4 million iPods and generated $4.4 billion in revenue, although both unit sales and revenue declined significantly from a year earlier.

In comparison, the iPhone -- Apple's top revenue generator -- in the latest fiscal year brought in $91.3 billion in sales and sold about 150 million units.

About the author

Ben Fox Rubin is a staff writer for CNET, covering component suppliers, mobile and general technology. He previously wrote for The Wall Street Journal and Dow Jones Newswires. Ben grew up in Philly, where he developed an affinity for the Eagles and Rocky-style exercise montages.

 

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