Apple's annual developer conference in San Francisco.
Apple Launches New 16 GB iPod Touch With No Rear Camera for $229
Apple introduced the redesigned fifth-generation iPod touch last September with the same 4-inch display seen on the iPhone 5 and a number of other enhancements. But with the new hardware pushing the entry-level price to $299 for a 32 GB model, Apple decided to continue offering the fourth-generation models at cheaper $199 (16 GB) and $249 (32 GB) price points.
Now, with production on the fifth-generation models having been underway for roughly eight months, Apple has found a way to shave costs through both natural component cost declines and the removal of several features to be able to offer a stripped-down fifth-generation model at pricing close to that previously offered for the fourth-generation models. Beyond the loss of a rear camera, the new entry-level iPod touch also omits Apple's "Loop" wrist strap introduced on the fifth-generation models last year.
Earlier this year, KGI Securities analyst Ming-Chi Kuo had predicted that Apple would discontinue the fourth-generation iPod touch in favor of a stripped-down fifth-generation model without a rear camera. Kuo had believed that Apple would introduce an 8 GB version of that device for $199, but Apple apparently decided that 16 GB of storage should be the minimum for the iPod touch lineup.