256mb Thin

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What's the difference between..?

The iPod Touch 5G and the iPod Touch 4G? What features did they add/upgrade that's different?

Most (if not all) of the features in the 5th generation are quite better than the 4th generation (from 2010).

Larger Screen (4" vs 3.5")
Better Display (IPS vs TN)
Better Processor (A5 vs A4)
Better Rear-Camera (5MP vs 0.7MP)
Better Front-Camera (1.2MP vs 0.3MP)
More system RAM (512MBs vs 256MBs)
Thinner (0.24" vs 0.28", if this means anything to you)
Lighter (3.1oz vs 3.6oz, if this means anything to you)
More case colors (six colors vs two colors, if this means anything to you)
Siri (which isn't available on the 4th generation, without jailbreaking)
iPod Touch Loop -- a secondary way of holding onto it, provided it's attached.

The iPod Touch 5G most resembles the hardware of the iPhone 4S (but with a larger screen), as Apple did not upgrade the iPod Touch 4G in 2011. They just added a color option and iOS 5.

System Benchmarks for iOS devices --

iPod Touch 4th generation - around 378
iPod Touch 5th generation - around 626

Yet, both pale next to the iPhone 5, which has benchmarks of around 1569

What is your current maximum budget for such a device?

Any way you could wait or do you need it now?

It's too bad that Apple currently doesn't offer any refurbished 5th generation models --

http://store.apple.com/us/browse/home/specialdeals/ipod

Needless to say, if Apple offered a 16GB version of the iPod Touch 5G for $249, it would most likely be flying off the shelves. [This seems to be a fair price, if you calculate the cost per GB between the 32GB vs 64GB models -- $3.125 per GB * 16 = $50]

Apple still could have kept the iPod Touch 4G 16GB version for $199 and it would be very profitable (as the hardware is from 2010), but most likely ignored due to the significant hardware upgrades and relatively small cost premium for a 16GB iPod Touch 5G. The way Apple has it now, profit margins are better distributed along the current price points. A 16GB iPod Touch 5G would disrupt that.

Given the waning popularity of the iPod Touch (due to the iPhone), Apple most likely didn't want a lot of varieties, may not have been able to satisfy the demand (due to the more profitable iPhone 5, iPad mini, and iPad), plus they undoubtedly make more profit on iPod Touch models with higher flash storage capacities.

I just wish Apple had upgraded the hardware in 2011 (but not doing so most likely helped profits by using last years hardware on new iPod Touch models).

Or had offered a 16GB iPod Touch 5G for $249.

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