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Apple rumored to hold August event to unveil new iPod lineup

post #1 of 43
Thread Starter 
Apple could hold its iPod-centric event sooner than the expected September timeframe, with an event rumored to take place either Aug. 16 or 17.

Citing a "reliable source within Apple," Brazilian publication MacMagazine reported Friday (via Google Translate) that Apple will hold an event either Aug. 16 or 17, a Monday or Tuesday. That would be sooner than the September timeframe in which many have expected that Apple will introduce its new iPod lineup.

The publication said that the music and media-centric event will be used to introduce a new iPod touch with a front-facing camera for FaceTime, as well as a rear camera with flash for taking pictures. It also said that Apple will add a gyroscope to the next-generation iPod touch -- all features found in the recently released iPhone 4.

The alleged August event would coincide with a recent rumor that suggested Apple would launch an updated version of its iLife suite this month. That report alleged that all of the applications -- iPhoto, GarageBand and iWeb -- would be upgraded to 64 bits, and that a new "mystery" application would be a part of the package. It also claimed that iDVD would not be included, and instead would be made available for download like iMovie HD.

Rumors of Apple's upcoming iPod refresh have gained considerable steam this week, with rumored products, illustrations of third party cases, and even purported components of Apple's next-generation iPod touch surfacing online.

Last year's media event, where the iPod nano with a video camera and FM tuner was announced, was held on a Wednesday, Sept. 9.
post #2 of 43
If so, the invites go out next week.
post #3 of 43
Quote:
Originally Posted by ghostface147 View Post

If so, the invites go out next week.

August, iPod... Smells fishy to me.
post #4 of 43
My guess is your wrong appleinsider. I'm willing to bet it will be an event that goes over ios 4.0 for ipad, maybe some ilife 11 and possible new redesigned macbook air (though my guess is that will come later in the year)

However i foresee no new ipods before the back to school promotion ends early september
post #5 of 43
Quote:
Originally Posted by Joe hs View Post

August, iPod... Smells fishy to me.

2007 was the last time they held a Special Event in August, but that may have only been for new Macs with an iPod/iTunes Special Event being held in September. I cant seem to find a list of these events to verify.
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post #6 of 43
Quote:
Originally Posted by Tac22 View Post

However i foresee no ipads before the back to school promotion ends early september

With Apple selling iPads as fast as they can make them, I don't foresee a refresh or a second/smaller form factor iPad until spring.
post #7 of 43
Quote:
Originally Posted by solipsism View Post

2007 was the last time they held a Special Event in August, but that may have only been for new Macs with an iPod/iTunes Special Event being held in September. I can’t seem to find a list of these events to verify.

Previous iPod events:

September 9, 2009.

September 9, 2008.

September 5, 2007.

September 12, 2006.

September 7, 2005.
post #8 of 43

Thanks, and in 2004 the iPod/iTunes event was in late October. I was thinking of August with the Mac special event.
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post #9 of 43
Apple is getting the jump on Xmas this year.
post #10 of 43
Quote:
Originally Posted by Tac22 View Post

My guess is your wrong appleinsider. I'm willing to bet it will be an event that goes over ios 4.0 for ipad, maybe some ilife 11 and possible new redesigned macbook air (though my guess is that will come later in the year)

However i foresee no new ipods before the back to school promotion ends early september

Sorry Tac but I think it's YOU that is way off base. This would be the perfect time to introduce new iPod Touches. School is just about to begin in the US. Sales are already happening or soon to start. As far as an iLife 11 (ELEVEN!!??) How about we get iLife 10 first. Why you jumping a whole year? Wouldn't hold my breath for a redesigned MacBook Air...
post #11 of 43
Quote:
Originally Posted by Porchland View Post

With Apple selling iPads as fast as they can make them, I don't foresee a refresh or a second/smaller form factor iPad until spring.

Why did you change his post? He said he doesn't foresee a refresh or a second/smaller form factor IPOD until spring. NOT IPAD....
post #12 of 43
Awesome iLife 11 and a new iPod touch that shoots video. Maybe the "special" add on is a lite version of iMovie for the ios4 so you can edit movies on the fly on the new iPod touch and iPad. :-)
post #13 of 43
Quote:
would be upgraded to 64 bits, and that a new "mystery" application would be a part of the package

I'd like to see a plugin for Garageband which allows better editing for musical notation, iMidi anyone?
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post #14 of 43
The iTouch will realize its full potential for me when it has all the built-in features needed for a wifi (VOIP) phone - essentially an ear speaker and a mic. I know you can do it now with microphone-headphones, but to have a subscription-free device that essentially behaves like a cell phone when in range of wifi would be great. But you still need the right app to make it work...

Add an upgrade to the built-in Phone App that gives it the option of connecting via VOIP and it would be awesome.
post #15 of 43
Thank God Apple will finally release an iPod update before all high school and college students are back in school. Actually, very few will be back in school by mid-August.
post #16 of 43
I think the mystery app will be a HTML 5 editor/content creator.
post #17 of 43
Apple still sells iPods?

While the Touch may still have a future, the traditional iPod has certainly fallen out of the limelight.
post #18 of 43
It seems odd that they'd refresh their iPods while the back-to-school campaign is still running (the one that gives you an iPod "nearly" for free). It ends Sep 7th, which fits well for a Sep 9th event or something similar, like previous years.
post #19 of 43
Quote:
Originally Posted by sippincider View Post

Apple still sells iPods?

Sure why wouldn't they? It's still a very profitable business. They sold more iPods last quarter than iPhones. A good chunk of that are Touches but they *are* iPods. (stand alone, contract free)
post #20 of 43
Quote:
Originally Posted by jeaz View Post

It seems odd that they'd refresh their iPods while the back-to-school campaign is still running (the one that gives you an iPod "nearly" for free). It ends Sep 7th, which fits well for a Sep 9th event or something similar, like previous years.

They've done it before, if I remember correctly, but only by a week or so. I think the new iPods were excluded from the Back To School offer.

A couple things your post made me consider:
  1. This year's updates make it financially viable to announce and release new iPods weeks before Back to School is over.
  2. The rumoured August Special Event will be about Mac focused, leaving September for the iPod/iTunes Special Event, like they've done in the past. For instance, new iLife, iWork, a preview of Mac OS X 10.7 and a major overhaul to one or more products in their Mac line.

Quote:
Originally Posted by SinisterJoe View Post

Sure why wouldn't they? It's still a very profitable business. They sold more iPods last quarter than iPhones. A good chunk of that are Touches but they *are* iPods. (stand alone, contract free)

And even when not counting the iPhone, which is obviously cannibalizing many iPod sales, they're holding their YoY unit sales. I even recall one quarter being a 1% YoY, which I thinking pretty damn impressive.
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post #21 of 43
Not a chance.

Sounds like someone got set up to see if they'd release the info. They are probably now unemployed.
post #22 of 43
MacNN says there's a small possibility Apple may be unveiling iOS 4 for the iPad early. I sure hope so. I'm running out of space and need folders. Multitasking would sure be nice, too.

Quote:
Originally Posted by coolcat View Post

Why did you change his post? He said he doesn't foresee a refresh or a second/smaller form factor IPOD until spring. NOT IPAD....

Read it again. Tac22 edited his own post to say "iPod" a couple of minutes after Porchland replied.
post #23 of 43



AUGUST seems very possible as this year the Jewish High Holy Days come out on SEPT 9, &10

Also announcement doesn't mean release date would be moved up.
post #24 of 43
I still believe that this latest Ipod will be the beginning of a new cellphonecompany paradigm . Watch.
post #25 of 43
welcome and not surprising.

i'm sure the new ipod touch will get the A4 processor, too. this is following the past trend of iphone in spring, ipod touch with specs to match in fall.

i'm more interested to see if apple is doing anything with the rest of the ipod lineup. my dream device would be an ipod nano with an edge to edge screen running a modified iOS build. this is probably a few years off though.
post #26 of 43
who the hell knows what Apple has up their sleeves...I was surprised by how elegant my MagicPad is and I love their battery charger.

With my iPhone 4....not sure I'm in the market for an iPod....don't want another device to maintain, charge, connect, etc.

I'm in the process of really reducing my tech to a 27" iMac to replace my current 20" iMac, AppleTV, DVD player, my Flat Screen TV and canceling my cable once and for all. If Apple isn't going to make a Flat Screen TV....I'll just use my 27" iMac as a TV!

Once I receive my iPhone 4, I will sell my Casio Exilim. Hell I'm even thinking of scanning all my personal docs and selling my desk, chair and file cabinet.

Put my Brother wireless all-in-one printer in a closet b/c I only use it once a week or so.

Wipe and sell my ext. HD and use the cloud, iDisk and DropBox.

End up with an iPhone 4, an iPad 3Gs, an MBA and a 27" iMac and I'm good to go!


One thing is for sure though, whatever iPods Apple comes out with they will be cool and elegant! And they will sell a butt load!
post #27 of 43
I'm eager to see what comes next. The sooner it happens the sooner I'll know what I want to purchase.

I don't own an mp3 player of any kind. For years I've been streaming music via the internet and playing it with speakers attached to the computer. I want to save the energy used by the computer and put the music on an iPod that uses much less energy. When I'm not using the computer I'll still have music. I'm beginning to record tunes from the internet (legally) and will load them on an iPod.

It will be for home use only. Listening to music while riding my bicycle or even driving a car hasn't always been important to me. I even had a car without a radio for a couple of years.

Apple should offer multiple colors on all of their iPod lineup. Doing that on their Mac Book line would really be cool. Mac Books deserve to show some style and flare too.
post #28 of 43
If Apple does announce an event in August for the iPods, it will be to give the media something else to write about other than the iPhone's problems.
post #29 of 43
Quote:
Originally Posted by sippincider View Post

Apple still sells iPods?

While the Touch may still have a future, the traditional iPod has certainly fallen out of the limelight.

My 160 g ipod is a work horse.I hail way back from the rio diamond 20 song days . NOW i have an ipod that hold movies photos songs tv shows pod casts address books contacts , i have 8 g left open .

I will one day buy a touch as a 2 nd machine B ut for me and for millions of over loaded content users the ipod will forever shine.

And as hundreds of millions of young people come of age.. >>many will choose a nano or classic ipod or touch .. The ipod halo and glory will never really die . Old cowboys fade into the sunset .. <<well sometimes they do . >>

go apple
go ipod


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post #30 of 43
Quote:
Originally Posted by Smallwheels View Post

I'm eager to see what comes next. The sooner it happens the sooner I'll know what I want to purchase.

I don't own an mp3 player of any kind. For years I've been streaming music via the internet and playing it with speakers attached to the computer. I want to save the energy used by the computer and put the music on an iPod that uses much less energy. When I'm not using the computer I'll still have music. I'm beginning to record tunes from the internet (legally) and will load them on an iPod.

It will be for home use only. Listening to music while riding my bicycle or even driving a car hasn't always been important to me. I even had a car without a radio for a couple of years.

Apple should offer multiple colors on all of their iPod lineup. Doing that on their Mac Book line would really be cool. Mac Books deserve to show some style and flare too.

thin >> transparent >>
translucent << machine tooled aluminum..

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post #31 of 43
Not too interested in new ipod ... but hoping that a new iLife is going to be something special.

iPhoto is easy to use but Iphoto 09 seems so sluggish for some reason, the maps are slow to load and the photo integration to other sites is not perfect so it's really lost whatever it was that made it good. I mean Picassa is free and though I haven't looked at it lately it's got quite a few of the same features released in iPhoto 09.
post #32 of 43
.

Mmmm....

If this is true, it may be another case of Apple rearranging its product announce/release/upgrade schedule.

You have to wonder why!

If they announce a new iPod Touch with similar features and components as the iPhone 4, wouldn't that just add to the current iPhone 4 shortages, and create instant shortages for the new iPod Touch?

Though... It is possible that Apple has been reserving components (and production lines) for the new iPod Touch 4 (kind of a dual production facility).

So, what's to be gained by moving the iPod update ahead?

Couple that with highly-agressive projections for the September quarter (Q4) at Apple's last earnings call.

Sure, the shortages show that Apple has a large backlog of iPhones and iPads -- but it isn't like Apple to be so aggressive about products already in the pipeline. And those shortages look like they may remain through the end of the year.


This leads me to think that some new product, or products, are behind Apple's aggressive forecast.

What could they be?

1) A smaller 7" iPad-- Nah! Fragmentation, with little added value.

2) A new AppleTV-- possibly, but not a big enough seller to justify the forecasts.

3) Apple branded TV sets-- I don't think that's a business in which Apple wants to be.

4) Game Console-- possibly, especially if combined with new AppleTV. Though, better suited to XMAS quarter.

5) Portable Game Player-- possibly, good revenue generator! But, competes with games on iPhone and iPod Touch.


So, What's it to be?

What gives Apple an immediate sales boost?

What enhances Apples long term goals?


... my "Magic™ Eight Ball" tells me that, yes, Apple has been reserving iPhone components and production lines-- but not only for a new iPod Touch! It's "Bet the Farm" time! Apple will announce a dual CDMA/GSM iPhone 4, available immediately! Any backlog of existing iPhone 4 orders will ship immediately as iPhone 4 Duals.

They could also announce that the existing stock (if any) at retailers or in transit are already dual iPhones!

If Apple announces this on Aug 15, there will be 44 calendar days left in the Sept quarter!

If they did this right, Apple can immediately ship all its 3 weeks of backlogged orders, have stock available at all its retail stores and resellers. Further, Apple would prime the pump at new carriers, domestic and world-wide, who offer CDMA networks.

I won't bother to run the numbers, but I think that iP4 Dual, alone, could justify the aggressive forecast for the September quarter.

I know, I know-- there's this FCC approval thing! I suspect the Dual has been in existence for some time and that that Apple could have already received approval for the new CDMA (in addition to the GSM).

Finally, I think that Apple wanted to do this all along, but just couldn't make it happen in time for the iP4 announcement.

.






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post #33 of 43
Quote:
Originally Posted by Dick Applebaum View Post

... my "Magic Eight Ball" tells me that, yes, ...

I don’t think you’re allowed to use the word Magic without Apple’s permission.

Quote:
It's "Bet the Farm" time! Apple will announce a dual CDMA/GSM iPhone 4, available immediately! Any backlog of existing iPhone 4 orders will ship immediately as iPhone 4 Duals.

I don’t think that is even a remote possibility. Look at all the phones that use these “world mode” chips. They are large, expensive, and are worse on power efficiency than their network-specific brethren. If these were viable then I’d think companies that do make both CDMA and GSM phones would have included these chips in all their products, at least in the US, so they could make and support one device instead of many. Even RiM’s new BB Torch is GSM.

I also have yet to see one that would actually work on all major carriers of the world. For example, the “world mode” BBs Verizon sold did not have the UMTS/3GSM bands for operating in North America. It was designed to be locked to Verizon with an option to be used in Europe and some other countries. I’d bet Apple and Nokia’s quad-band GSM and penta-band UMTS phones cover more of the world’s networks and land mass than the “world mode” phones I’ve seen.

However, this wouldn’t be a bad time to announce a CDMA iPhone if they have their supply issues sorted out. If they don’t then announcing it just after the holidays would be best. In either case, I can’t see them doing it with a 3 months of the normal iPhone release as supply still seems constricted and they still have about 40(?) more countries to release to before the end of September.
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post #34 of 43
Quote:
Originally Posted by solipsism View Post

I dont think youre allowed to use the word Magic without Apples permission.

Sorry!

Apple is Magic

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post #35 of 43
Awesome, if they do this before september I might get myself a new touch, if it lives up to my expectations that is.
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post #36 of 43
Quote:
Originally Posted by solipsism View Post

I dont think youre allowed to use the word Magic without Apples permission.


I dont think that is even a remote possibility. Look at all the phones that use these world mode chips. They are large, expensive, and are worse on power efficiency than their network-specific brethren. If these were viable then Id think companies that do make both CDMA and GSM phones would have included these chips in all their products, at least in the US, so they could make and support one device instead of many. Even RiMs new BB Torch is GSM.

I also have yet to see one that would actually work on all major carriers of the world. For example, the world mode BBs Verizon sold did not have the UMTS/3GSM bands for operating in North America. It was designed to be locked to Verizon with an option to be used in Europe and some other countries. Id bet Apple and Nokias quad-band GSM and penta-band UMTS phones cover more of the worlds networks and land mass than the world mode phones Ive seen.

I keep anticipating (hoping) that Apple and some chip mfgrs. have had some special Dual cell chips in development that will meet Apple's requirements for cost, battery, size, etc.

Sadly, you are, likely, correct-- "No iP4 Dual for you".

Quote:
Originally Posted by solipsism

However, this wouldnt be a bad time to announce a CDMA iPhone if they have their supply issues sorted out. If they dont then announcing it just after the holidays would be best. In either case, I cant see them doing it with a 3 months of the normal iPhone release as supply still seems constricted and they still have about 40(?) more countries to release to before the end of September.

The other alternative is to offer two phones: 1 GSM; 1 CDMA.

I think that is less than optimum-- 4 Apple SKUs instead of 2.

But, CDMA is a market that is currently unaddressed by Apple.

From what I read, LTE will not completely replace CDMA for 4 years minimum... and, during that 4 years, LTE phones will need to handoff to CDMA, just as 3G currently handsoff to Edge on a GSM network.

Given that choice, Apple cannot afford to ignore the CDMA market for the next 4 years-- so, the sooner they adress the CDMA market, the better!

For those, who need Dual network support, they can do what they do now: buy 2 phones-- this time though, they both can be iPhones!

Sigh!


If you look at Andy Zacky's forecast for the September quarter:

http://seekingalpha.com/article/2191...r?source=yahoo




He has a higher forecast than Apple: $19.1 billion vs $18 billion.

If Apple forecasts $18 billion, I believe they expect to attain $20 billion.

Where does that extra $2 billion revenue come from?


Looking at the chart, I think the estimates for the iPad are low-- rather, more like 6 - 7 million units. But that won't get them [all the way to] an extra $2 billion,

That leaves the iPhones. Zacky's forecast is reasonably correct considering the published supply constraints.

But, If those shortages are caused by building a Dual iP4 or (sadly, more likely) a iP4 CDMA on a shadow manufacturing line-- then there could be a significant bump in iPhone sales and revenue for the September quarter.

Let's say Apple has an initial inventory of CDMA iP4s and a running production line!

How many iP4 CDMA iPhones could Apple sell, world-wide, in the 7 weeks remaining in the quarter (after an Aug 15 announce)?

! million? 2 million? 5 million?

Asked in a different way: If Google is currently activating 200,000 Android phones per day * how many CDMA iP4s could Apple activate per day for the next 44 days (after the Aug 15 announce)?

* http://www.mediapost.com/publication...art_aid=133348

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post #37 of 43
Quote:
Originally Posted by Cubert View Post

I think the mystery app will be a HTML 5 editor/content creator.

That kind of makes good sense. On the other hand, it could be an app for iWork, and a 4th iWork app for the iPad. Either way, will they call it i5, or would Intel have to sue them!?
post #38 of 43
Quote:
Originally Posted by Dick Applebaum View Post

.



This leads me to think that some new product, or products, are behind Apple's aggressive forecast.

What could they be?

1) A smaller 7" iPad-- Nah! Fragmentation, with little added value.








.






.

To me the better route would be a 5" Touch. The Touch could easily get a larger screen and still remain portable. You could retain the resolution of the iPhone retina display and it would still be a step up in resolution on a 5" device compared to the current Touch.

I agree with you regarding fragmentation which is why it would seem more logical to increase the size of the Touch than it would be to keep the Touch and add a 7" iPad.

The key is to give the Touch the largest screen you can while still allowing for a device small enough to be pocketed. You can go larger than the current unit and not lose portability. As far as I'm concerned, any boost in screen size would be welcome, again provided the device doesn't become so large that it can no longer be comfortably pocketed.

To compensate, the Nano could also receive a larger screen. Go touch screen and you could accomplish that with a very minimal increase in the Nano's size. And of course there's the iPhone.

This could easily be achieved with no price increase because all Apple would have to do is not double the memory, hence lowering cost to compensate for the costlier screen. If the Touch went Retina Display, it would be expensive in any event.

Best part is, no one has predicted this will happen. We've had rumors of a 7" iPad, of a camera added to the Touch, and so on and so on. But enhancing the Touch with a larger screen would be much more in keeping with how Apple operates. The Touch has morphed into a pocket computer. Who doesn't want the maximum screen real estate possible on a computer, portable or otherwise. More screen has always been a good thing. It's not cast in stone that a pocket computer has to be no larger than the current Touch. The Touch is sized as it is because up to this point Apple was taking advantage of economies of scale by having the Touch and iPhone share a lot of components. But these devices sell in such large numbers now that it would be justifiable to have each one employ the technology that makes sense given what the device is used for. An iPhone makes sense being the size it is. The Touch should be somewhat larger because making calls on it is not one of its functions.

I think a 7" iPad, with the Touch remaining in its current size, would be problematic. That 7" iPad would be so close in price to the Touch that it would be bound to cannibalize sales. A few iPad sales in the 9.7" configuration would also be cannibalized. On the other hand, a 5" Touch would stand apart from the iPad but help in competing against any slates competitors introduced in sizes below that of the iPad. A 5" Touch would also compete well against E-Readers.

Makes more sense than adding a 7" iPad but I'm not calling the shots, so we'll see how Apple plays this.
post #39 of 43
Quote:
Originally Posted by Carmissimo View Post

To me the better route would be a 5" Touch. The Touch could easily get a larger screen and still remain portable. You could retain the resolution of the iPhone retina display and it would still be a step up in resolution on a 5" device compared to the current Touch.

I agree with you regarding fragmentation which is why it would seem more logical to increase the size of the Touch than it would be to keep the Touch and add a 7" iPad.

The key is to give the Touch the largest screen you can while still allowing for a device small enough to be pocketed. You can go larger than the current unit and not lose portability. As far as I'm concerned, any boost in screen size would be welcome, again provided the device doesn't become so large that it can no longer be comfortably pocketed.

To compensate, the Nano could also receive a larger screen. Go touch screen and you could accomplish that with a very minimal increase in the Nano's size. And of course there's the iPhone.

This could easily be achieved with no price increase because all Apple would have to do is not double the memory, hence lowering cost to compensate for the costlier screen. If the Touch went Retina Display, it would be expensive in any event.

Best part is, no one has predicted this will happen. We've had rumors of a 7" iPad, of a camera added to the Touch, and so on and so on. But enhancing the Touch with a larger screen would be much more in keeping with how Apple operates. The Touch has morphed into a pocket computer. Who doesn't want the maximum screen real estate possible on a computer, portable or otherwise. More screen has always been a good thing. It's not cast in stone that a pocket computer has to be no larger than the current Touch. The Touch is sized as it is because up to this point Apple was taking advantage of economies of scale by having the Touch and iPhone share a lot of components. But these devices sell in such large numbers now that it would be justifiable to have each one employ the technology that makes sense given what the device is used for. An iPhone makes sense being the size it is. The Touch should be somewhat larger because making calls on it is not one of its functions.

I think a 7" iPad, with the Touch remaining in its current size, would be problematic. That 7" iPad would be so close in price to the Touch that it would be bound to cannibalize sales. A few iPad sales in the 9.7" configuration would also be cannibalized. On the other hand, a 5" Touch would stand apart from the iPad but help in competing against any slates competitors introduced in sizes below that of the iPad. A 5" Touch would also compete well against E-Readers.

Makes more sense than adding a 7" iPad but I'm not calling the shots, so we'll see how Apple plays this.

i think both things will happen
a 5" touch
a dual iphone
large screen nano

yet i am still amazed at the ipad and iphones that have just arrived

we need time to breathe



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post #40 of 43
Quote:
Originally Posted by brucep View Post

i think both things will happen
a 5" touch
a dual iphone
large screen nano

yet i am still amazed at the ipad and iphones that have just arrived

we need time to breathe



9

Apple needs to stay ahead of the competition. It would be a serious mistake for Apple to stop pushing forward because that would open the door for competitors to close the gap.

Don't think in terms of August 2010 but rather August 2011 because Apple will be selling whatever it releases in the next few weeks likely right through to August 2011.

Sure the competition is a couple of steps behind but the incredible success of the iPad will no doubt serve as a big-time motivator.

I see competition coming at both ends of the spectrum, i.e. in the 5" touchscreen end and with devices sized like the current iPad. Now is the time to deal a preemptive blow with the smaller form factor and the iPad, which they can't build fast enough, will no doubt get an upgrade early next year.

By bringing out a 5" Touch now, Apple can challenge competitors' e-readers, and be offering a hard-to-beat 5" touchscreen device long before such devices flood the market. Meanwhile, the second generation of the iPad is going to be here long before the summer of 2011. Hence Apple will maintain its lead.

On the other hand, release a Touch based on iPhone dimensions and if a need presents itself in the next few months to offer a touchscreen unit in the 5" range, Apple would have to bring out a separate device and that would not be a smart move. As soon as the 5" touchscreen model came to market, the Touch would take a hit. So you would devote time and effort to creating an iPhone-based Touch and then undermine the device by bringing out an alternative with a similar price a few months later. Right now the base iPad here in Canada costs $499. A 32GB Touch checks in at $329. The 5" Touch as a separate unit would have to come in at a minimum of $100 less than the iPad. So let's say it retailed for $379. If you have a choice between a device with a 3.5" screen and one with a 5" screen, if the price difference is something like $50, the 5" model clearly has the advantage.

I could imagine Apple continuing the sell a Touch model with minimal changes to the current version, much as it still sells the iPod Classic. Priced low enough, such a device would fill a niche. But introducing a heavily revised Touch including a 5" screen would be a no-brainer.
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