New Cheaper iPod Touch 16GB Cuts Price by $70

Apple quietly announced a new iPod touch this morning with a cheaper $229 entry-level price, no rear facing camera and no loop attachment.

The new iPod touch features the same 4-inch Retina Display as the previous model and the iPhone 5S, but drops storage and the rear facing camera to cut the price by $70.

By all appearances the new iPod touch looks like a 5th generation iPod touch, but it is only available in silver and black and in place of a camera there is a black cover, which is very un-Apple in looks.

The new iPod touch 16GB looks a lot like the colorful iPod touch 5th generation with a few missing features.

The new iPod touch 16GB features a small black oval on the back where the camera is on more expensive models.

By giving up the rear facing 5MP iSight camera, loop connector, colorful options and storage capacity, users can save $70 on the iPod touch. The 5th generation iPod touch 16GB model features the same Apple A5 processor and is capable of Air Play, Siri and other popular iOS 6 features. It can run most apps on the iOS App Store, though any which require a rear-facing camera will not work at full capacity.

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The iPod touch 16GB is available online starting today for $229 and will be in Apple stores on May 31.

The cheaper iPod touch features lower storage, no camera and no loop attachement.

The cheaper iPod touch features lower storage, no camera and no loop attachment.

Apple took a major hit in iPod sales last quarter with a 56% drop in iPod unit sales quarter-to-quarter and a 27% drop year-over-year. Some of this can be attributed to more users getting an iPhone, but the price of the 5th generation iPod touch that Apple announced in September 2012 may also carry part of the blame.

The new iPod touch comes just a day After Tim Cook spoke about Apple’s reasoning for offering multiple iPod models to fit varying use cases and price points. In this case it appears that Apple is reaching out to price┬áconscious┬áconsumers who want a cheap iPod touch for their kids or themselves.

This move is just the latest example of Apple’s willingness to fill gaps in their portfolio, which is why we argued Apple is open to a larger screen iPhone 6 despite statements that appear to contradict a move to larger, higher-resolution screens. Some may see this move as Apple also being open to a stripped down cheap iPhone, a role that previous model year devices currently fill in the U.S.