iPhone ownership affects iPod touch appeal

Out of all the new products launched at Apple's special event this week, the one receiving the most attention in the aftermath is undoubtedly the iPod touch. Commonly referred to as the "iPhone without the phone," the upcoming device looks particularly appealing to consumers who were initially interested in the iPhone's multi-touch interface and excellent mobile web browser, but immediately turned off by the original price tag and required contract with AT&T.

But what about consumers who already own an iPhone? Will they be among the first in line for an iPod touch? Will they even buy one at all?

I've had my iPhone (or UMPC Lite) since the day it went on sale and for me, the answer is no. I will not be buying an iPod touch.

Even with the possible $100 discount and added storage capacity, I don't think anyone who already owns an iPhone (and isn't a diehard iPod and/or Apple fan) will buy one either.

Have a look at the following chart to see why.

Update 1.15.08: Stocks, Maps, Weather, Notes, and Mail added to iPod touch. Early adopters must pay $20 for new software upgrade.
Update 2.5.08: 16GB iPhone and 32GB iPod touch announced.

	iPhone	iPod touch
Capacity/Price	4GB: $299 (discontinued) 8GB: $399 16GB: $499	8GB: $299 16GB: $399 32GB: $499
Contract	AT&T*	None
Dimensions	4.5" x 2.4" x 0.46"	4.3" x 2.4" x 0.31"
Weight	4.8 ounces	4.2 ounces
Display	3.5" (480 x 320, 160 ppi)	3.5" (480 x 320, 163 ppi)
Connectivity	802.11b/g Bluetooth 2.0+EDR EDGE Quadband GSM	802.11b/g
Native Applications	Safari YouTube Calendar Contacts (in Phone) Clock Calculator Photos Video (in iPod) Music (in iPod) Settings iTunes Wi-Fi Music Store Stocks Maps Weather Notes Mail SMS Text	Safari YouTube Calendar Contacts Clock Calculator Photos Video Music Settings iTunes Wi-Fi Music Store Stocks (added 1/08) Maps (added 1/08) Weather (added 1/08) Notes (added 1/08) Mail (added 1/08)
Camera	2.0 megapixels	None
Speaker	Built-in speaker	None
Headphone	3.5mm (recessed)	3.5mm (standard)
Supported Audio	AAC, AAC-DRM, MP3, MP3 VBR, WAV, Audible, Apple Lossless, AIFF	AAC, AAC-DRM, MP3, MP3 VBR, WAV, Audible, Apple Lossless, AIFF
Supported Video	H.264, MPEG-4	H.264, MPEG-4
Battery Life	Audio: up to 24 hours Video: up to 7 hours Web: up to 6 hours	Audio: up to 22 hours Video: up to 5 hours Web: unspecified

*Two-year contract required. Individual iPhone rate plans start at $60/month. Current AT&T customers can add unlimited data (starting at $20/month) to existing voice plans.

Good thing Steve Jobs isn't concerned about cannibalization because the iPhone definitely gobbled up my desire for an iPod touch.