Tech on Deck: Keeping the iPod's Touch in an iPhone World

June 13, 2008 — -- The first iPod played only music files. As Apple introduced new models, though, the iPod could display calendar information and photos, play podcasts and games and finally, after much Apple naysaying, video.

The iPod touch took things even further, adding a Web browser, mapping, e-mail and small programs for looking up information like weather and stock quotes when the device was in a Wi-Fi hotspot. What's next is up to the collective imaginations of software companies around the world.

The reason has a lot to do with the iPod's richer relative, the iPhone. Apple originally didn't want other companies developing programs for its luxe handset. But the company had a change of heart, and now wants to encourage developers to write software for its cell phone, the same way that companies have been writing software for the Blackberry and Palm Treo for years.

Because the iPod touch shares a lot of technology with the iPhone, it can take advantage of many programs written for that device. While a wide range of software, however, is a given in the world of smartphones, it's unusual in the world of MP3 players.

In contrast to the iPod touch's large screen, high storage capacity and premium price, more companies have been creating competitors for Apple's iPod shuffle with devices that have small or no screens and cost less than $100.

These include the Creative Zen Stone, SanDisk Sansa Clip and Samsung's just-introduced S2 Pebble. Indeed, as the market leader, it's in Apple's interest to revitalize the portable audio and video player category, where growth has slowed from 19 percent last year to a decline of 3.5 percent this year during the January through April time period, according to The NPD Group's retail tracking service.

That said, at least one niche competitor has been steadily stacking on features for its devices. Staking out the portable video space early by using big hard drives and later big screens, Archos's line of portable media players includes the ability to play games and download music and videos directly over Wi-Fi from a variety of companies such as CinemaNow. It can also use a Web browser (sold as an add-on) to view YouTube and other sites.