Analyst: ‘iPod touch is in the final stage of its product life cycle’

Apple could be planning to reduce its investment in its iPod touch now that the iPad mini has launched, an analyst has said.

KGI Securities analyst Ming-Chi Kuo said in a research note this week that the iPod touch has now “entered the final stage of its product life cycle.”

The newest touch, which was introduced alongside the iPhone 5 in September, has a 4in display and comes in multiple colours. Despite its new look, sales are expected to be affected by the iPhone and the new iPad mini, which is just £20 more expensive than the iPod touch.

Apple Insider reports that Kuo believes that the iPod touch’s sales growth will be limited due to cannibalisation from other Apple products. Therefore, Apple won’t continue to make significant investments in developing the device, the analyst said.

At its special event on Tuesday, Apple CEO Tim Cook announced that the new iPod touch and the new iPod nano have sold three million units collectively since their launch last month. “Sales are going fantastic,” Cook said.

It’s worth noting that, even if Apple does decide to stop updating its iPod touch, it is unlikely that it will be taken off of the market for some time yet. Take the iPod classic, for example, which hasn’t been updated since 2009 but remains in Apple’s Stores.