"We believe Apple will need to reposition the iPod touch product by September now that the iPhone acquisition price is lower," he says in the report. "We expect the iPod touch to experience significant cannibalization from lower-priced iPhones."
In about a month, I expect the rumor mill to start grinding out whispers of Apple placing an order for screens they've never used before, perhaps screens between five to seven inches diagonal.
The iPod Touch can't be sustained at is current price point.
Apple will have to move in something new to generate a fatter margin. And to continue the Apple excitement.
That will be the missing-in-action touchscreen device I've been calling the iPod Air. Or it could be called the Mac Mini Touch.
I'm not sure Apple will give it a Mac designation, as that would mislead people into thinking they could put current Mac OS X programs on it (similar to the confusion that lives on to this day regarding "Windows Mobile").
This device will run what Apple has been calling the iPhone OS. So it makes sense to designate it as an iPod. And why waste the Air trademark attached to the MacBook? It's worked well for them.
I believe that September will bring it. Just in time for college kids to grab one, just in time for everyone to pencil it in on their end-of-year gift-giving lists.
Let's not forget that Apple owns this trademark:
That says "Air" to me. What about you?
Update: See here about that trademark.