Apple Doubles iPod Touch Storage to 32 GB

[Jason Dunn]

<div class='os_post_top_link'><a href='http://www.apple.com/ipodtouch/' target='_blank'>http://www.apple.com/ipodtouch/</a><br /><br /></div><img border="1" src="http://images.thoughtsmedia.com/resizer/thumbs/size/500/dht/auto/1202224274.usr1.jpg" alt="" /><br /><br />Apple has bumped up the storage of the iPod Touch to a whopping 32 GB (the iPhone also got doubled), although they added an equally-whopping $100 price tag to it, making it a $499 USD player. That's a lot of money for a media player, but when you factor in the new software update (which includes mail, notes, and other functionality) and the new storage, what you have is essentially a WiFi PDA that's a great media player, and you have more storage than any similar device on the market - the closest competitor might be a Dell Axim X51v with its VGA screen and a 32 GB CompactFlash card.<br /><br />What does this mean to the Zune? At this point, not much - there's no Zune that can really compete with the iPod Touch. Microsoft's product offerings are clearly designed to compete against the iPod Nano and the iPod Classic. But Apple has certainly raised the bar for the other players in the market, and if Microsoft is planning to come out with a Zune to compete with the iPod Touch, they'd better have a 32 GB offering (or bigger). I also can't help but notice that if the Zune had a memory card slot, there'd be an opportunity for Zune owners to easily expand the storage on their devices. The Zune team has to get out of this &quot;if Apple isn't doing it, why should we?&quot; mentality they seem to be stuck in...

[ptyork]

<div class='os_post_top_link'>The Zune team has to get out of this &quot;if Apple isn't doing it, why should we?&quot; mentality they seem to be stuck in...

Apple has an obvious reason NOT to support add-on memory, specifically the ability 1) to charge a significant premium for increased flash capacity and 2) force users to buy an entirely new device simply to increase capacity. It WOULD be a significant differentiator for the Zune were this capability added, but MS would need to give up these potential benefits. I don't think their mentality is the "if they do it so can we" one, but rather an "it makes sense" one. However, it doesn't make much sense if they don't sell devices because they aren't differentiated, which is the problem now, so perhaps it is time to consider something as "radical" as expandable storage...

[Covert]

the closest competitor might be a Dell Axim X51v with it's VGA screen and a 32 GB CompactFlash card.
http://www.jasondunn.com/the-its-rule-364 ;)

I agree with your assessment. Microsoft would certainly do well to expand its offerings to compete with the iPod Touch, but I'd rather they bring back the stuff they removed when Zune 2.0 rolled around, like ratings, flagging, and auto-playlists. It's frustrating to watch them stagnate.

[MarxMarvelous]

I'm surprised they haven't released a 16GB iPod nano. That's a nice opportunity for the Zune team to beat Apple to the punch (although yes it's true that other manufacturers have done so long ago).

Price is what really matters though. Once they can get to 16GB under $200 I think that would be a big seller. I just couldn't imagine ponying up $500 for a music player but I'm sure a lot of folks will :)

[eufreka]

An 80 gig zune is $250, leaving you another $250 towards your zunepass...that's basically 16 months of FREE unlimited music on a player with more than twice the storage, as well as other great features of it's own.

So that $500 32-gig iTouch gets you VERY LITTLE compared to a zune, in my opinion.

It does show that Apple knows how to take more and more money from its same customers.

[ptyork]

An 80 gig zune is $250, leaving you...

An 80 gig iPod Classic is $250, leaving you...

Apples & oranges here. About all that zune really provides over the ipod classic is WiFi sharing, and IMHO you give up quite a bit by going zune vs. iPod in terms of functionality (minor) and ecosystem (much less minor). If that sharing functionality is somehow truly important to you (and I'd guess you'd be in a 1% minority group if so since it is so crippled and so rare to find another zune toter to share with), then the zune was the right choice. Otherwise, it is more of a toss-up (or an emotional decision). Emotion removed, iPod wins (their continued market dominance proves it). Regardless, MS needs to differentiate, which was the real point (I think) of the post. I'm NOT an Apple fan at all and I'm very much tied to MS in other areas, but I own an iPod and won't switch unless there's a major compelling reason to do so.

The Touch provides quite a bit more, almost to the point of being a real PDA. And once Apple's SDK is (finally) released, it'll probably really BE a viable PDA (I'll keep the probably in there in case Apple really screws up the distribution model by making iTunes store a forced, money-skimming intermediary between application developer and device which I have a sick feeling will be the case). A PDA the zune ain't and this is certainly worth a premium over the music player only device.

[MarxMarvelous]

Regardless, MS needs to differentiate, which was the real point (I think) of the post.

I agree with most of your post ptyork, but I think you've sold MS a bit short on differentiating the Zune 80 vs the iPod Classic. For a lot of people (particularly those into watching video), the 3.2" screen (Zune 80) vs the 2.5" screen (iPod Classic) is a huge factor. If you are a big video user in the Apple world, you are pretty much looking at the Touch and it's 3.5" screen. Throw in the large storage requirements that come with video and you've pretty much committed to $500 for 32GB Touch. :)

Contrast that with the Zune 80 which gets you more storage and a comparable screen (the Touch is slightly larger and higher res) for half the price.

That said, MS needs to get video into the marketplace ASAP...

[Jason Dunn]

However, it doesn't make much sense if they don't sell devices because they aren't differentiated, which is the problem now, so perhaps it is time to consider something as "radical" as expandable storage...

Exactly, that's my point - Microsoft needs to do things BETTER than Apple, not just match them, which is more or less what they're doing now.

[Jason Dunn]

http://www.jasondunn.com/the-its-rule-364

GAH! :o Corrected. :p

...but I'd rather they bring back the stuff they removed when Zune 2.0 rolled around, like ratings, flagging, and auto-playlists.

100% agreed - they need to keep moving forward on both the hardware and the software fronts. The hardware should have removable storage, and the software...should be much, much more functional that it is today.

[Jason Dunn]

...in there in case Apple really screws up the distribution model by making iTunes store a forced, money-skimming intermediary between application developer and device which I have a sick feeling will be the case.

Well of COURSE that's what they're going to do - it's APPLE. :D

[ptyork]

For a lot of people (particularly those into watching video), the 3.2" screen (Zune 80) vs the 2.5" screen (iPod Classic) is a huge factor.

Good point. I hadn't really considered the screen size. To me, they're all too small to really get into video, but I'm probably not in the majority in these forums (though I'm probably still in the majority at large for now).

Hmm, now if Apple were to release the iPod TouchHD with 80 & 160 GB drives at $349 & $449--presumably being "worse" than the standard Touch by being 4-5 mm thicker--then you'd really have something for you mobile videophiles. I know that flash will eventually replace drives in these devices as prices drop to levels comparable to mini-drives, but until then I'd imagine there'd be a market for a fatter, phatter Touch for less...

Would a $100 premium over the Zune (80GB -> 80GB) be enough to justify the additional features offered by the Touch??

[Stinger]

The problem with the current Zune range is that it's on par with the iPod's last generation of players. The HDD Zune tops out at the same 80GB as the previous generation of HDD iPods. The flash Zune looks very similar to the previous generation of iPod nanos.

As Jason said, Microsoft need to be beating Apple. At the moment, they can't even keep up sadly.

[Jason Dunn]

The HDD Zune tops out at the same 80GB as the previous generation of HDD iPods. The flash Zune looks very similar to the previous generation of iPod nanos.

Agreed on the HD players, Microsoft should have had a 160 GB version of the Zune. On the Flash players though, I personally much prefer the design of the Zune 4/8 and the last generation Nano over the current "fatty" design - and I've heard other iPod owners say the same thing. So I think in terms of design Microsoft probably did what they felt was the best design, even if it was similar to Apple's last-gen design. I do feel they should have had a 16 GB Flash player though - they should have done better than Apple there.

[eufreka]

Seriously, until Microsoft cancels the zunepass OR Apple starts offering an unlimited subscription, you really are arguing Apples versus Oranges...

The people who complain about zune (and constantly compare it to the iPod) are clearly identifiable as NON-zunepass users. And I have to wonder about anybody who buys a zune WITHOUT a zunepass...after all it is the differentiating feature.

[eufreka]

An 80 gig iPod Classic is $250, leaving you...

Apples & oranges here. About all that zune really provides over the ipod classic is WiFi sharing...

Simply NOT true. One offers unlimited subscription, the other does NOT.

So that extra $250 buys 16 months of UNLIMITED music downloads from one; or it buys 250 tracks from the other. Period.

If that is not a valid feature differentiator for you, so be it. But it is attractive to some. So there IS a difference.

[eufreka]

Why are iTouchs so popular with teens? Not for the music...but for the wireless internet.

They use them DURING school to update their facebook accounts and message one another...especially in environments where their cell phones would be instantly confiscated.

Teens are very, very crafty. Once school administrators start to perceive this, however, iTouchs will be banned as well.

What is also interesting is that teens are not particularly likely to respect issues surrounding the use of their neighbors' wireless networks. It won't be very much longer before we start to hear reports of teens "stealing" access from open networks. That'll probably be a really revealing situation for Apple, too!

People have been arrested for war driving with laptops, but what happens when a 13-year-old gets picked up for "war biking"?

Apple does a lot of market research.

As for why they keep increasing the flash memory, they really have no choice. Their suppliers are continuing to develop larger flash drives, and if Apple doesn't buy them, their competitors will. So in that sense, I think Apple is simply forced to ride the wave, so to speak.

[Jason Dunn]

And I have to wonder about anybody who buys a zune WITHOUT a zunepass...after all it is the differentiating feature.

Well, despite the fact that I can't yet buy a Zune Pass, the reasons why I like the Zune more than the iPod Classic are many:


Better trackpad/controls
Better screen for movies and pictures
Better software. The Zune v2 software, even though it's missing a lot of features I want, is still LIGHT YEARS better and faster than iTunes.
Better hardware design. I think the new v2 Zunes look better than the iPod Nano and Classic they're designed to compete against
Broader video file support: WMV, h.264/MPEG is better than what the iPod can do
Wireless song sharing is great if you have a friend with a Zune (I do)So those are my reasons...

[Jason Dunn]

People have been arrested for war driving with laptops, but what happens when a 13-year-old gets picked up for "war biking"?

Anyone that leaves their network open deserves to have it get used by others. :D

[eufreka]

Anyone that leaves their network open deserves to have it get used by others. :D

If only that were point...in a lot of places, it is not allowed.

...and when a company puts millions of devices into the market (and into the hands of a particular market segment) that basically automatically infringe on others network's, it is only a matter of time...tick...tock...

[ptyork]

Seriously, until Microsoft cancels the zunepass OR Apple starts offering an unlimited subscription, you really are arguing Apples versus Oranges......after all it is the differentiating feature.

Funny how people have such different ideas of differentiators. The subscription model has largely failed in the marketplace. Perhaps this is because Apple doesn't offer it or perhaps because it has (largely) failed. Honestly, it is probably the former since I have little doubt that such a model would be less profitable for Apple than their current purchase model. Anyway, for you, this is obviously the thing that makes the Zune the correct choice for you.

For me, I listen to audiobooks more than I listen to music, so a subscription model would be a total waste and the Zune's the lack of Audible.com support makes it completely worthless to me.

I guess the bottom line is that competition is good since it provides everyone with a choice and everyone can decide on their own, most-critical differentiator. So given that these devices all have a common set of core capabilities, the challenge is to provide a device that, in the absence of market momentum, provides differentiators enough to stand out from the crowd and provides the "correct" set of differentiators to appeal to the broadest market segment. This is where MS is currently failing. You gotta love free markets...

[jaxim]

I've been a loyal and avid Zune fan, but with Apple's new release, i will be getting my first iPod.

In the past, I've said the 3 things that were stopping me from getting an iPod Touch were:

1) it had to have at least 32 GB. I was happy with my Zune 30, so 32GB is plenty of room to fit all my music and a few TV shows.

2) it had to be cheaper. $500 is still too much and I will probably wait a month or two to purchase a Touch until online retailers start selling them cheaper. I also recently came into a windfall recently which further offset the price of the device.


3) it had to support flash player. Not only because I'm a flash developer, but because surfing the web is almost a necessity to have the flash player installed. The Touch still doesn't support this, and I don't think a jailbroken one does either. But this is something I could see Apple eventually releasing support for, even if it is a $20 firmware upgrade. It would be worth it.


The iPod Touch won;t be able to support my Media Center recorded TV files, but I've been not impressed with the Zune's software speed in converting those files onto my Zune, so even if I have a Zune or iPod, I'd still use a 3rd party software to convert the files.

So I'll continue to love my Zunes and I'll store most of my videos on my Zune 80 (especially for long trips), but the iPod Touch 32GB is just too irresistible to pass up.