Analyst: Touchscreen, OSX-based iPods en route

Your next generation iPod is going to look a lot like the iPhone.

That's the conclusion from Piper Jaffray analyst Gene Munster, who is quickly becoming a favorite among bloggers due to his Apple reports.

In his latest missive Munster notes the following:

"What's Next for the iPod: An iPod that looks like an iPhone (see blog focus). We believe the iPhone reveals much of what the iPod will soon be. Specifically, we expect Apple to release high capacity iPods based on OSX sometime during or before MacWorld '08 in January. These iPods will likely have touchscreen media features similar to the iPhone, but will not have the wireless phone or internet features."

My take: This makes complete sense for Apple. People will get used to navigating music with the touchscreen on the iPhone in short order and wind up preferring it. And iPhone-ish iPods are sure to spark an upgrade cycle.

"We have factored in iPod cannibalization as a result of the iPhone. OSX-based iPods with some of the touchscreen features of the iPhone should lessen the impact of the cannibalization. We believe iPhone buyers are looking for a better mobile phone, and the iPod features are an added bonus."

My take: This point remains to be seen. Could a touchscreen iPod cannibalize the iPhone? It's possible. How many folks bought the iPhone for the touchscreen and interface? How many bought the iPhone for the data access? I'd bet it's the former.

"New iPods Could Improve iPhone Margins. If future iPods use similar parts and software, the OSX-based iPods will add economies of scale to the iPhone business."

My take: An OSX that's written once (we assume) and used everywhere could indeed boost Apple's profit margins.

Bottom line: Munster is touching on the touchscreen halo effect noted by UBS a few months ago. Rest assured many of Apple's products will look iPhone-ish. Can the Macs be too far behind?