The release of Apple's new 16GB iPod Touch is apparently a calculated move for the most valuable company in the world. Apple discreetly replaced the 4th generation iPod Touch with a device that is similar to the iPod Touch 5 but without the rear camera and loop strap. The new Ipod Touch is cheaper but retains the Retina display of its predecessor.

Apple's new iPod Touch is viewed by many as part of preparing the market for a refresh of the hardware to accommodate the incoming iOS7. The 4th generation iPod Touch was removed from online store listings. Apple has discontinued production of this product model.

The new iPod Touch boosts the business side of the company while improving Apple's chances of bringing in more new customers and enjoy long-term growth opportunities.

Cheapest iOS device with modern hardware and software

With a price point of $229 in the US or $249 AUD in Australia, the new iPod touch is the cheapest Apple device with modern hardware and high quality display. The high resolution screen makes the new iPod a good deal. The new iPod Touch may have lower storage capacity at 16GB but it still maintains to keep up with other iOS devices in terms of technical specifications and system performance. Parents can think of the new device as a potential gift idea for teenagers since it's not as expensive as the iPhone.

Apple keeps it profits

By removing the rear camera and limiting the color choices of the new iPod Touch, Apple is expected to maintain its margins through smart engineering and product decisions. The new iPod Touch is only available in silver and black variants unlike the Ipod Touch 5 sold in a variety of colors.

Create desire for a new Apple device with camera

For first time iOS customers who bought the new 16GB iPod Touch, the desire to buy a new Apple device with a rear camera may be strong whether in the short or long term. Customers might want to buy a 32GB Ipod Touch 5 or an iPhone 5, both more expensive than the new 16GB iPod Touch.

Establish loyalty to iOS devices

For many customers, the new iPod Touch will be their first device. Apple remains confident that iPod Touch owners will remain with iOS for a long time. Buying the new iPod Touch is the quickest way for new customers to get on board with the Apple iOS. The quality of Apple's products will help sway customer loyalty.

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