Internal Apple documents from last April shown in court today paint the picture that the company was scrambling to identify and determine ways to compete with devices running Android, as well as keep sales of the iPhone from petering out amid growing competition.
Pages from a 2014 planning document last April, shown during a cross-examination of Apple’s marketing chief Phil Schiller, noted that smartphone growth rates were declining, something that could impact iPhone sales. Worse yet, the document said, was growing consumer interest for less expensive, larger-screened smartphones, with a headline on the page reading “consumers want what we don’t have.”
Apple is doing just fine in the US. In large parts of Europe and the rest of the world – not so much. I don’t mean to say they are in trouble or will die – so let’s get that strawman out of the way straight-up – but Apple’s leadership (unlike some others) is smart enough to know that what matters is not last year, this year, or even next year – what matters is five years from now. Once people get accustomed to relatively cheap, non-iOS devices with large screens, they won’t be going back to a phone with a tiny (by comparison) display that costs twice as much.
So yes, those larger-screen iPhones are coming.
Some declining growth can be expected due to market saturation. Even all the kids in middle school have iPhones now so an 8% year over year growth rate from where things are today is still a win.
With that said, current Android phones don’t have a lot of room left for improvement aside from maybe camera and battery life. As things start to level off in terms of being “good enough” we could definitely see a rise of people opting not to spend $650 on flagship phones.
As it stands now, at least in the US, monthly bills for a phone are almost $100/month and it includes with it an almost $20/month payment towards a 2 year $400 phone subsidy so people don’t mind paying an additional $200 or $250 for the best phone.
Without the subsidy cheaper phones like the $400 Moto X would be a lot more popular but as you pointed out, that shift might not matter much for another 5 years.
You can get a Moto X at Republic Wireless for $299 every day.
No contract monthly plans start at $5 for WiFi only. $10 for cell calls and texts, no data, $25 for 3G data, $40 for LTE. Up to two plan switches per billing cycle.
There are other disruptive MVNOs out there as well.
I don’t know much about Republic Wireless but it looks like Moto X is $370 unlocked on Amazon. Their Moto X is modified but for $300 its still good of their service is worth it. Without reading in detail on them I think their modifications have to do with preferring WiFi for calls/text when available instead of the cell network.
They seem like my kind of company but unfortunately I am not in a Sprint service area. They are what Verizon/ATT needs for a kick in the pants though.
You cited Moto X as subsided phone, but according to Motorola, they are making profit on any single phone (including the cheaper and best selling Moto G) they sell.
Another thing, I believe that there is a lot of room for improvements in Android phone and, again, Moto X is a excellent example with its ability to hear commands even with screen off and the active notifications. Surely, most companies (read Samsung) are just increasing screen, but this doesn’t mean other areas can be improved
Right. Personally, I can see a LOT that these phones still don’t do. For example, none of them (except maybe Windows Phone) have the ability to associate and connect contacts from various apps, so the phone can recognize if the same person contacts me across various apps, including phone, sms, facebook, g+, etc.
I think they’re just getting started.
I see the “Internet of Things” and new built-in sensors being two things that will continue to drive people to buy new phones. As our phones are able to take over an control more parts of our lives, new devices will be needed. Imagine your phone as a TV remote, game controller, garage door opener, etc. If your phone doesn’t already have those capabilities and more it will. I can see SDR (software defined radio) being a new killer app for small devices like phones, too.
Prepare to be very sad if your phone is lost or stolen.
Generic Android does that automatically. And, if it doesn’t, the People app lets you manually Join multiple records into one.
I can look at records in the People app and see:
– phone numbers (work, home, cell, etc)
– Facebook stuff
– G+ stuff
– Twitter stuff
– Skype info
– Voxer info
– etc
And, clicking on the contact record pops up a dialog asking you which service you want to use to contact them.
There was some confusion, it is the carriers that are subsidizing phones in the US, not the manufacturers. Currently with a new 2 year plan on Verizon Wireless the Moto X is free. That’s a subsidy.
My point was as long as mobile carriers are spotting you the first $400 on phones there isn’t much incentive to opt for inexpensive phones.
I see, but aren’t any similar plans for iPhone?
here in Brazil there is the same deal, you can even get the Moto G for free, but plans are really expensive – as most things in our country, the most expensive cellphone data in the world…
What is pricing like in Brazil for an iPhone and data plan? My friend bought her iPhone her because she said they are expensive in Brazil because of import taxes etc. there.
I guess I assumed data was more reasonably priced than the phone itself but I suppose there is always WiFi.
This old Opera report http://www.operasoftware.com/archive/smw/2010/09/index.html shows that Brazil isn’t nearly the worst / most expensive – it’s in fact the least expensive …though I suppose it might have changed in the meantime.
Edited 2014-04-12 22:33 UTC
The vast majority of people in the world use prepaid services or low cost plans.
We have 4 Android smartphones (Galaxy Nexus, a couple of Nexus 4s, and a Fierce) with T-mobile unlimited voice, text, and data (first 500 MB per month per phone at 4G speeds), and our total bill is $109.64 per month – less than $28 per month per phone.
We’ve never bought a subsidized or financed phone, though.
Spent last month in California. EVERYONE has iPhone 5 (not even 4) and iPad. I probably only saw 2 android devices in all my time there.
While on a domestic flight with Wifi, every single person of the plane was using an iPhone 5 or an iPad 3+ or mini. Tried hard but not a single Android device.
Edited 2014-04-05 15:07 UTC
Here in Brazil I have the opposite impression. A lot of nerds, lawyers and medics bought iPhones on the “first wave” and now they are simply vanishing. You see a lot of Android phones and tablets on bus or walking on the city, but if you find an iPhone you can consider to be on your luck day. And cheap phones with quality, like Moto G, are only helping to expand even further the gap.
I live in California, I see plenty of Android devices on a daily basis. Your personal anecdote may be evidence of, if anything, is poor eyesight from your part, maybe?
It’s not evidence of anything, I’m sure that a lot of people has Android, I just found it surprising because the ratio of iOS-Android seems to be much higher there.
I was simply pointing out that your perception could be mistaken. Anecdotes tend to be irrelevant in an anonymous forum.
(Not trying to be confrontational, btw)
Edited 2014-04-05 21:29 UTC
FWIW (not much), I just returned from two business trips to India, and at least in the places I’ve been 8/10 people used Samsung devices. I did see a couple of HTC devices, but non of the local people I worked with or saw had an IOS device.
Granted, India is small market compared to the grand state of California, but if I were an Apple CEO, I’d be *very* worried if both China and India users ignore IOS devices. (Especially given iPhone 5C failure).
– Gilboa
Edited 2014-04-06 04:37 UTC
Well Apple has made it abundantly clear they simply aren’t going to compete at a certain price point, and if that means losing a huge percentage of even populous and important countries, so be it. And that has nothing to do with the display size of Apple’s phones.
Prices for phones whose capacities would be quite formidable a few years ago are headed for way under $100 USD.
http://www.businessinsider.com/its-a-race-to-the-bottom-2014-2
And Apple ain’t going there either.
Edited 2014-04-06 05:59 UTC
Well they’ll probably go broke (again) unless they create a new niche for expensive products. Apple, like the Bourbon royalty, remembered everything and learned nothing.
The last I checked, they had something like $160bn in cash (although with close to $20bn in debt).
They are not going broke anytime soon. Dell, Samsung etc are more likely go broke before Apple. Apple has very few product lines and runs a very lean operation that makes them quite resilient. And they have a few dollars to spare to get them through the lean times.
Apple’s growth rate will slow, and they will settle into a “small” but profitable niche while Android makers begin the inevitable run to the bottom that killed the PC industry. There will eventually be three or four companies left standing, all making small profits while Apple makes larger profits off a small market share.
Basically, the smartphone market will go the same way as the PC market.
Samsung is a massively diversified conglomerate that owns everything from hotels to pharmaceuticals – it has almost no possibility of going broke. Apple on the other hand is literally a two trick pony – tablets and phones – and is losing market share and mind share daily.
The last time Apple decided to be small and profitable (1990s) it came perilously close to bankruptcy.
Which means Apple won’t be making money either.
Given the state of the U.S. and European economy, I doubt that betting the farm on people throwing 1000$ every two years to upgrade their phone “just-because” is a sensible long term plan.
Lets see if they stick to their guns if/when their market share drops to 10%. *
– Gilboa
* Keep in mind that we are currently in the booming-market phase with two digit yoy market growth; once the mobile market will reach some type of equilibrium you’ll see the ASP declining faster than a falling brick.
Edited 2014-04-06 12:53 UTC
Regions with high costs of living have that tendency to use more expensive stuff. Come to London and look what’s going on in the expensive areas vs the cheaper areas.
The will have to reñease more models each year.
Sure, one size doesn’t fit all, but that doesn’t mean they should go down the Samsung route and deliver 10* different models. IMHO 4 or 5 different sized phones is more than enough
*http://www.samsung.com/uk/consumer/mobile-devices/smartphones/
Edited 2014-04-05 16:21 UTC
Tell that to BMW who now produce 40 (and growing) distinct body styles. Each model has numerous colour, engine, suspension, trim and body kit options. It is literally possible to order a unique BMW if you tick enough options.
BMWs cost a lot of money. iPhones are, by comparison, much cheaper. I can add an option to a BMW (or and Audi or Mercedes) that costs as much as a few iPhones.
My point was that almost all luxury brands sell a very diverse range of products. BMW even sell bicycles.
In my perfect world, each phone manufacturer would have 6 phones released every year:
– a sub-4″ phone
– a ~4.5″ phone
– a 5+” phone
And each phone would come in 2 variations:
– one with a hardware keyboard
– one without a hardware keyboard
So long as you didn’t go crazy on the SoC, you could even use the same one in each phone, greatly simplifying things even more, and making the screen and keyboard the main differentiators.
Alas, we do not live in my perfect world, and we have to suffer through the shotgun approach taken by the likes of Samsung, Motorol, HTC, LG, Sony, etc.
Somehow I infer you are a Spaniard
I don’t understand this obsession with huge screens! I don’t want to carry a small tablet in my pocket, I want a phone-sized phone. One that I can use with one hand, &c.
The obsession is that cell phones are not just cell phones anymore. They’re media consumption & entertainment devices. People play games, watch tv shows, videos, troll the net, receive real-time updates of whatever — you name it. The smaller the screen, the more these types of activities suck therefore bigger screens are desired. On any given day the least common activity I see people doing with their cell phone is actually making a phone call.
Watching videos is going to suck even if the device is 5-6″. I want my phone to be a nifty comuncation device, one that I can recieve an email on and easily write a reply without stoping what I was currently doing. The new generation of phones suck at that because they are to big and clumsy and requires the use of both hands.
Whether you like it or not, cell phones aren’t just communication devices any longer. Also, you can say that gaming sucks even on a 5-6″ screen. But, there’s no shortage of people wanting to play them at that screen size. I have zero desire to watch videos on my cell phone, yet everywhere I look peoples eyes are glued to their cell phones doing just that.
Like another user said, I don’t want to need a backpack to carry my portable device(s). All I need my cell phone to do is make phone calls. Sadly, phone calls seem to be the least important aspect of a cell phone these days. And worse yet, the least wanted form of communication.
I wouldn’t describe the present situation as “sadly” or “worse yet” – remember how obnoxious can be people talking loud on their phone in public, with total disregard to those around them?
I don’t want to carry a backpack for all devices, one is enough.
It comes down to different tastes and needs. I have poor eyesight, so I like having big, clear screens. On a similar note, I often browse the Internet on it, either while waiting for something or to search for information. There’s also one thing that a big screen is absolutely terrific for: I use it as a GPS-navigator while driving. That way I don’t need to buy a separate device just for that, plus on the phone it’s automatically always kept up-to-date and all.
I got a Nokia 1520 for development, It’s incredibly huge, a little smaller than a Nexus 7.
However, the UI is pretty much the same of my Lumia 620, just much bigger and unusable with just one hand, you need two.
Which is really funny because when you open the box, it has a giant DONT TEXT WHILE DRIVING sign over it. This phone is probably much safer than any other because you can’t really do both things at the same time anyways
I’ve never used a phone with one hand. Even my ancient brick, flip phone, and beloved Treo worked better with two hands.
I’ll probably regret asking this, but what’s so vitally important that you need a free hand while you’re dialing, texting, or browsing?
Me either. That’s why I traded in a 2 month old Google Nexus 5 for my new iPhone 5s. (I’ll confess I thought about getting the gold one… ‘gold eez best, ehy?’)
But I agree. I don’t need a Galaxy Tab Mini in my pocket, because… the whole point of having a cellphone of any kind, no matter how smart is… IT’S A FRIGGIN’ PHONE! Also, I don’t like having to wear clothes with huge pockets just to accommodate a device, the whole point of which was SUPPOSED TO BE portability. I like to imagine someone buying a spare battery twice the size of the phone, and have it wired to the phone and stuck in another pocket. Same idea. The point was NOT being tethered to anything.
Every time I see (as occasionally I do,) someone pull one of those GIANT-screened phones out (and they often have bulky protectors that cost about a third what the phone cost, because when you buy a cheap, giant smart-phone, obviously you want to protect it, I realized what the real deal is. It’s like buying a “Hummer.” It’s compensating for something >small< somewhere else in his life.
I’ve tried several Android devices, most with larger screens than the iPhone, including an HTC Evo and the Nexus… and each was more of a pain in the ass than the last, with no clear advantage besides “slightly cheaper”. The lure of Android was supposed to be freedom and openness but Google has quietly killed that in favor of having a Hoover Vacuum cleaner for your information stuck right there in your pocket, so with that advantage gone, I could see no reason to keep the thing, and despite I spent money on the deal, I went back to the iPhone.
“I have the money, why not get the GOOD smartphone?” I thought. So I did; got the 5s, and haven’t looked back.
Lets not forget that we use our phones for a wide variety of things.
My sister although she doesn’t work in the industry, uses her phone for Email and texting.
She picked a larger phone because the texting is difficult on small onscreen keyboards. Text is larger too, as she is 57 years old now and her eye site is not as good.
My brother-in-law uses Google Maps, and prefers a larger screen to get map information on his frequent business trips.
I myself use my phone for all of the above, but also writing apps, which I use myself and a phone with a screen smaller than say 5.5 inches is problematic for most of the issues above and for issues regarding data display.
So I think discussing screen size keep in mind for younger people smaller screens are probably best. But for older people who are using their phones for a large number of different possible uses, it makes sense to have a larger screen.
In Germany you see lots of people carrying Notes nowadays.
I bought a Note 3, it’s an awesome device overall, but too bad it can’t physically shrink when you put it in your pocket or when you’re holding it to your face. My N9 is the perfect size for that, but the larger Note 3 is great for browsing the web and doing note taking and playing games.
Granted, I also improved my Note 3 by installing the X-Note Rom on it and using X-Transformer to changing the DPI of everything, so the high resolution is actually useful!
Both products mentioned contain technology invented by Eich (javascript), who you described as “medeival”.
Are you sure you should be even talking about products containing technology invented by Eich?
As mentioned before, I agree with gay marriage, but disagree with people like you that harangued him out of office for his personal views.
Unlike you I believe in freedom, free speech, and the democratic process.
To quote Evelyn Hall:
“I disapprove of what you say, but I will defend to the death your right to say it”
This represents my views, clearly doesn’t represent your views.
I agree with you there and even if I don’t appreciate him as a person, I still would’ve wanted to give him a chance to show what kind of a CEO he makes. Alas, isn’t this topic already rather beaten to death? Do we need to continue this here?
Since when has that made a difference?
Absolutely! It is, after all, the intarwebz; a place where you are always right and everyone who doesn’t agree is wrong and you need to let them now that at every opportunity.
(Seriously though, I was actually curious what your opinion on the issue was)
Well, you could’ve just asked
Your comment was a hilarious display of lack of self awareness from your part, and at so many levels which is hard to pick one…
pick one, so far you’ve said jack.
Ok, if I must…
a) Your post was about something completely unrelated to the topic at hand.
b) Using a quote, supposedly about defending other people’s freedom of expression, to justify your denouncement of another person’s expression you happen to disagree with.
Freedom of expression has multiple directions. E.g. Mr. Eich is free to support all the homophobic causes he wants, and gay people are free to express their lack of support for an organization that selects an individual with such views to lead it. In other words, Mr. Eich is not the only one with a right to express his views freely. Furthermore, freedom of expression is not the same as freedom from consequences.
c) You let us know you love “democracy” and “freedom of expression,” while your post is about telling somebody else to “kindly” STFU.
If you did indeed love “democracy” and “freedom of expression” so much, then it follows you would not be going out of your way to bring something unrelated to the topic at hand trying to silence an editor whose opinion you find distasteful. Alas…
In any case, this whole discussion has nothing to do with the topic at hand. But there is a quick review about how your post struck to me as being just a display of your lack of self awareness at hand.
Cheers.
Edited 2014-04-05 21:34 UTC
This is a natural progression of the maturing of the phone market. In a mature market everyone is selling the same product. Competition is on things like price, availability, cosmetics, etc. You now see phone hardware reviewers desperately reporting minor differences in screen size, weight, memory, cpu speed etc when these variations have almost no impact on the functionality of the phone. And despite the best efforts of Apple’s legal team software features can be rapidly copied. Of course it is possible the smart people at Apple can create some new advance but I wouldn’t bet on it.
Ok, if I must…
a) Your post was about something completely unrelated to the topic at hand.
This is an IT forum, Thom has been making political comments. His opinion, not facts. That makes this fair game in my opinion.
b) Using a quote, supposedly about defending other people’s freedom of expression, to justify your denouncement of another person’s expression you happen to disagree with.
Freedom of expression has multiple directions. E.g. Mr. Eich is free to support all the homophobic causes he wants, and gay people are free to express their lack of support for an organization that selects an individual with such views to lead it. In other words, Mr. Eich is not the only one with a right to express his views freely. Furthermore, freedom of expression is not the same as freedom from consequences.
c) You let us know you love “democracy” and “freedom of expression,” while your post is about telling somebody else to “kindly” STFU. I.e. Taking ownership of positive concepts so that the opinions of those who may disagree with you are conveniently invalidated.
If you did indeed love “democracy” and “freedom of expression” so much, then you would not be going out of your way to bring something unrelated to the topic at hand trying to silence an editor whose opinion you find distasteful. Thus the lack of self awareness.
See above regarding political comment, opinion expressed by Thom.
Clearly it’s you who in fact are seeking to silence my opinion.
I really don’t understand your reference to homophobic etc, as stated in every post I have made, I in fact _support_ gay marriage.
I fundamentally don’t accept that the media can harangue someone like they have done with Eich though.
It is you who are intolerant of other opinions, not I.
In any case, this whole discussion has nothing to do with the topic at hand.
Cheers.
Thom made a political personal observation on an IT forum. It’s fair game.
Actually the rumor-mongering sites are now backtracking on claims there will be a 2014 5.5-inch display iPhone, now claiming this non-existent phone will be “delayed”. Only if the phone misses both the United States and China’s main gift-giving / shopping seasons, Apple will have no reason to introduce such a phone until late 2015, their ordinary cycle. Thus there is a great likelihood all the rumors of a 5.5 inch iPhone in the 2014-15 time period were simply made of whole cloth, lies for click-bait.
Also the main barrier to ownership of Apple iPhones outside of where its marketshare is strong is cost, not display size. And Apple leadership has proven with the pricing of the iPhone 5C that in fact they are not willing to do what the market demands to maintain market share at the cost of other priorities.
Edited 2014-04-06 03:52 UTC
I’m not so certain of that, it has the sound of something becomming truth when repeated often. A quick look at local prices shows the 5S is priced exactly the same as the top of the line Samsung, Sony, Nokia and HTC devices. So price is not the factor making people pick up one of those non Apple phones.
And from what i see at work, where they hand you a 5S if you don’t ask for anything else, most of the new phones seem to be Samsung, Sony or Nokia(Lumia). A year or two back, it was almost exlusive iPhones. So Apple had the marketshare and they are free, so cost it’s not an issue. To mee it seems like my co-workers actually want those other phones.
This is what a $200 Chines phone has to offer:
8 cores
32 GB
1GB RAM
5″ screen
under $200
http://www.androidauthority.com/thl-w200s-full-review-hands-356634/
I’d be terrified if I was a major manufacturer.
It’s a mixed bag, right now there isn’t much market for cheap off brand phones and even when major manufacturers ship cheaper phones they never pull in very significant sales numbers compared to their flagship phones.
I think a really good $1500 phone may actually sell more units than a decent $200 phone. Phones are really important to people and for some people they double as a status symbol.
If I got to make decisions like that I would do more to test the high end of the market. Just like a Prius has a lot of hybrid badges I would sell a exclusive color S5 for $1,000 that meant you purchased a lot of land in the rain forest, planted a tree, saved a polar bear, and vaccinated a couple poor african kids. The phone would come with enough carbon credits to offset its existence. Bundle an exclusive chat app with it that only people who bought the $1000 smug edition are able to use and smell each others farts with.
I could definitely out-smug the iPhone user base and the phone would one up the other flagships as the more expensive status symbol. It sounds like an April fools joke but I genuinely believe it would sell more units than the W200S you linked.
Luxury goods are the first items to disappear during a recession. Europe, the US and China are all verging on an economic meltdown within the next decade (probably far sooner).
Yeah because we all know how badly Apple’s sales suffered after the crash starting 2008 …
In future we will probably use many automatically synced devices ranging in size from a watch to a giant screen TV to interact with. We will use whichever device supports our needs at the time. There is no ‘one size fits all’ pardigm.
Concept I learned in the ’80’s about marketing and sales, that for some reason none of these big-wigs seem to plan on or even be able to conceive of.
… so what is Market Saturation? Simple: people who want them already have them.
Whenever something is new or takes off there’s this artificial bubble of people buying them — it happened with netbooks. Just because netbook sales have trickled off does it mean nobody is using the ones they own? Of course not, it’s just the people who want one, have one.
Smartphones have really hit that point… in fact they’re starting to reach the point of ‘pissing off the normals’; As someone my friends turn to with tech questions, having said friends ask me “what the devil is up with these cell phone zombies” or “what exactly would it offer to me” is getting tiring. I’ve even told some folks to just go back to having a conventional landline since they’re always bitching about the piss poor coverage, endless static, echo and reverb, and in general the fact that many of them leave it home because they don’t want to be bothered when out and around. To quote someone I know “How the hell can ANYTHING be so important it can’t wait until I’m in the office or home?”
It’s not for everybody… and even if it was, half the price of a decent used car is NOT worth it for something shiny with an apple logo on it; especially since to make it useful you end up tied to a monthly plan that’s half a car payment for a new car! (It’s almost as stupid as how Obamacare makes the minimum private insurance the equivalent of a studio apartment’s monthly rent and the deductable equal to eleven months same!)
The “consumers want what we don’t have.” shouldn’t be a suprise for Apple either; their ridiculous price gouging and elitist “but it’s worth it for Apple” nonsense means that 80 to 90% of the population could give a flying purple fish about their products, and never will. IF they make an actual consumer level product it will harm their elitist effite image possibly costing the established base, and worse it might mean they would actually have to *SHOCK* compete with somebody which to be frank, I don’t think they’re capable of given their form over function / flash over substance attitude.
One other thing I think is missing from most companies strategies is that as a consumer item, you reach the point of providing more functionality than consumers need. You hit a plateau where nobody cares about your bells and whistles, they want something cheap that works. MORE so in a economic recession driven by companies and governments trying to convince people that a luxury item is a necessity!
… and that’s what a cell phone, much less a smartphone is, A LUXURY… and how do people afford it? Same as that refinancing commercial : “Well I’m in debt up to my eyeballs”.
MAYBE it’s because I’m from an area where the average personal income is 25k and rent for a one bedroom is $800/mo minimum, there are more used cars on the road than new, nobody can afford car insurance (which is thankfully optional) and EVERYONE is bitching about being forced to pay for health insurance they can’t afford — but the whole “$200 for a phone and $100/mo for a data plan” nonsense is just as idiotic as being expected to pay $40/mo for 768/128 and $120/mo minimum for cable TV. (which is why everyone I know is canceling cable TV and going hulu/netflix)
But of course that means nothing to affluent upper and (allegedly) middle class yabbo’s who know jack **** about anything outside their nice safe ‘burbs and what normal people deal with on a day to day basis… and why most people in my area are simply planning to BOHICA.
I swear, just reading some of the responses here have me picturing the scene at the end of the music video for Everlast’s “What it’s like” — with all the normal people standing out in the rain and cold watching the vanilla white affluent family in the sterile white room oblivious to everything but themselves.
Edited 2014-04-06 13:56 UTC
What matters is five years from now. Once people get accustomed to relatively cheap, non-iOS devices with large screens, they won’t be going back to a phone with a tiny (by comparison) display that costs twice as much.
THOME RUN
I just wish Apple would catch up on their iOS devices regardless if we are talking iPhones, iPads, or iPods. They all lack storage. I have much more data than 32GB devices can hold, let alone iTunes materials.
This is what I want to see:
Micro SD card support, transferable between devices
IPod Nano width phone with slide out keyboard for teens
Projectors for multimedia (movies, YouTube, etc.)
super-sized iPad like they show in Disney sitcoms
Support for LED wireless