iPod retailers are indicating most of the current line of iPods are being discontinued in favor of a new lineup, according to a report by Apple Insider. All iPods at US Target stores have been switched to "discontinued" status in the inventory system. Similar things are happening in the UK; retailer Argos will be presenting new displays and wall graphics announcing price reductions, scheduled for late August or early September.

Some Wall Street analysts have anticipated a need for Apple to restructure its inventory to further strengthen its strong position in the PMP business. Apple's Q3 2008 financial report showed sales of over 11 million iPods, a 12 percent unit growth from the same quarter last year.

Despite the growth, analysts have seen the need for Apple to restructure the iPod line, including offering an iPod touch under $200, necessitated by the availability of the new iPhone at a lower price. Analysts also hinted that new inventory might consist of increased capacity iPod shuffles and iPod nanos, at the same price as the current lower capacity models.