Apple today announced its 16GB iPod Touch is now available in "vibrant colors" and 5-megapixel camera for $199. The world's most valuable technology company also dropped the prices of its 32GB and 64GB Touch models.
The iPod Touch, which features a four-inch Retina display and A5 chip, has been cannibalized heavily by the iPhone, which does everything the Touch can do plus a whole lot more. While iPhone sales have steadily risen over the past six years, iPod sales have withered. This year Apple sold its 500 millionth iPhone but only its 100 millionth iPod—a product that came out several years before the phone.
Apple is not complete giving up on the iPod Touch—it will be supported by the company's next-gen iOS 8, launching this fall—but the weak update (new colours?) and lower price point suggests the company isn't investing many resources into the dying product lineup.