Apple CEO explains lack of camera and price-drop to $199.
Apple CEO Steve Jobs says the company now sees its iPod touch as predominantly a handheld gaming device, responding to feedback from customers.
"Originally, we weren't exactly sure how to market the touch," he told the New York Times last night. "Was it an iPhone without the phone? Was it a pocket computer? What customers told us was, they started to see it as a game machine. We started to market it that way, and it just took off."
That would explain the lengthy section of last night's new products launch - billed as music-focused - which was devoted to new games for the iPod touch and iPhone. Apple's Phil Schiller also devoted several minutes to talking up the touch's gaming capabilities against Sony's PSP and Nintendo's DS.
"Now what we really see is it's the lowest-cost way to the App Store, and that's the big draw," continued Jobs. "So what we were focused on is just reducing the price to $199. We don't need to add new stuff. We need to get the price down where everyone can afford it."
As announced last night, Apple had sold 20 million iPod touches even before the price drop. The focus on gaming and apps also appears to be why the company didn't release a new iPod touch with a camera, as had been predicted.
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