Shawn Wu is wrong about this
American Technology Research analyst Shaw Wu last night warned that Apple's recently-revealed iPod touch price cut may not go far enough, saying: "While we are pleased to see lower pricing, we are concerned that price points may remain too high given the tough macroeconomic environment and relative to the 3G iPhone at $199 and $299."The iPod Touch is an entirely different product than the iPhone. Regardless of price which I will get to in a moment, the product is used differently by the person who buys it. The "price out the door" does not begin to tell the price difference. If the iPod Touch died after 24 months of use it would cost $1455 (69*24)-199) less over that period. So you could buy say an iPod Touch AND a really bad used car for less.
Assuming he is thinking of unit sales and he was expecting iPods to be part of the Margin Crushing trend that Apple has told us about I suggest that iPhone Accounting and broader channel Sales of Macs are margin crushing enough.
Repeat after me. iPods are the CASH COW! ...iPods are the CASH COW!
