Cheaper, cooler iPods on the way? A company close to Apple seems to think so…

We all know that Apple products aren’t the cheapest around, but according to a report by research firm Piper Jaffray that could change soon. The best part? The “coolness” factor doesn’t have to go.

In a report to clients, Piper Jaffray claimed that Apple saw the worst year-over-year growth rate in the history of the iPod. To change this, the firm thinks that Apple will have to change its strategy.

“In order to achieve this level of year-over-year iPod growth, we are expecting Apple to introduce cheaper, innovative iPods with Wi-Fi and multi-touch technology,” analyst Gene Munster wrote. “We believe that, despite a slowdown in growth in the MP3 market, Apple’s vision of the iPod line-up becoming a mainstream Wi-Fi mobile platform will have two results. First, it will spur growth in the portable media player market, particularly from the replacement cycle. Second, if Apple is able to lower prices on Wi-Fi connected and possibly touch-screen iPods, it will be able to maintain or grow its leading market share position,” Munster concluded.

Apple has yet to respond on the matter, but considering the company’s close ties to Piper Jaffray, these predictions are probably not that far-fetched.