The iPod touch was introduced on this date way back in 2007 at an Apple music event. Steve Jobs gave the keynote address at that event (video below), but it's hard to imagine that the first generation (pictured above) didn't even have a proper speaker. While I wonder if anyone at Apple worried that the iTouch, as some call it, would scuttle iPhone sales, I'd say that hasn't proven to be the case at all.
As of May 2013, Apple has sold about 100 million of these things. iPhones, meanwhile, have sold hundreds of millions, although Apple likes to lump iOS devices together to say that over 500 million iOS devices have been sold. Traditionally the company is loathe to break out iPod touch numbers, but suffice it to say the touch is a smaller share -- by far -- than the iPad or iPhone.
Still, the touch is a great device. Today's 5th generation touch has the 4-inch screen that the iPhone 5 has, a great camera, and it comes in colors like the iPod nano. I bought my kids a couple of 4th generation devices during the last Christmas season they were available, and since then we've logged hours on FaceTime, and they've probably spent a hundred bucks or more on apps. As an entry-level iOS device, the iPod touch is still fantastic.
There are frequently rumors of the iPod touch being discontinued, but consider that Apple released a cheaper version without a camera recently. I think the touch is useful in cases where a cellular radio is impractical or makes no sense. Plus, you never have to hassle with a cell phone contract (ah, the joys of the US telecommunications industry), which makes it ideal for kids or anyone who doesn't need a phone with apps.
Do you have an iPod touch? Do you think Apple should discontinue it?