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iPhone to Supplant iPod

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    NEWSLETTERS

    AP
    Apple CEO Steve Jobs discusses the features of the new Apple iPod Nano at a news conference in San Francisco, Wednesday, Sept. 1, 2010. (AP Photo/Paul Sakuma)

    The 10-year-old iPod may be ready for retirement as Apple decides to concentrate on its signature device, the iPhone.

    Rumors have been swirling around the demise of the iPod for the last week, with several news outlets wondering aloud how much longer the iPod will be a featured Apple device. While the iPod still accounts for 7 percent of its revenue, sales are down about 12. 5 percent from a year ago, according to MarketWatch. So far, the device is looking like it won't be part of Apple's event on Oct. 4, which could mean at least one of the four versions of the iPod could be ready for slaughter, Fast Company reported.

    But Apple should kill the Touch after this latest minimal refresh, mainly because it's likely releasing the iPhone 4S--the cheaper iPhone "lite"--to appeal to a more entry-level smartphone market, including those in developing nations, as well as the enormous global pre-pay scene. This phone is expected to beat the iPod Touch, if only because it sports a 3G connection and probably a better camera system.

    If money is the reason people have bought an iPod touch, then the new, cheaper iPhone makes it obsolete. It also makes sense that Apple could trim its lineup -- huge events and marketing cost money and Apple may not want to spend any more on the iPod.