So Long iPods?

Almost all analysts, as well as Mac-dedicated websites, agree that the new iPhone model could sign a new era for Apple, and Cupertino could sell dozen of millions units of the new device as it should bring the missing features identified in the first generation iPhone (such as GPS and 3G). In addition, the change in the iPhone business plan should massively extend the market of potential iPhone owners. Except in USA, UK, France and Germany were the exclusive partnership will be maintained (for how long?), in other countries, several carriers will offer the iPhone in their catalog and will probably fight to get new iPhone-driven subscribers thanks to phone+data offers. In addition, the price of the future iPhone should also drop significantly due to financing organized by carriers. All those facts could drive total iPhones sales way over initial Apple’s expectations, even for 2008.
There will of course be collateral damages, and beside other mobile phone manufacturers, the new iPhone will cannibalize part of the iPod markets, as the new handheld will include all iPod-like functions and features while bringing additional ones, among them being a mobile phone. The iPod touch might be the most affected model, and its price should drop massively, making entry-level models of iPod, iPod nano and iPod shuffle almost not viable, so we should not be surprised by a reorganization of the iPod offers, bringing more rationality and integrating the new and growing iPhone market.
If 2008 should be the year of the explosion of the iPhone market, it should also mark the end of the exponential growth of iPod sales. This would simply be the evolution of a market which appears to be massively evolving the way Apple decides it.