Apple announced today that the iPod touch and the iconic iPhone will get memory increases to 32GB and 16GB respectfully. Both will cost $499.

In sort-of related stories, market-analyzer Canalys says that that Apple shipped 2,320,840 iPhones in Q4 of 2007 for a 6.5% share of the ‘worldwide converged smart mobile devive market’, edging out Motorola.
And the Wall Street Journal informs that iPod sales are flat in the US, and suggests that Apple should put the hustle on that 3G iPhone they’re working on, and despite the fact that the AAPL business model targets “higher-end clientele willing to pay more for a better product”, they remain vulnerable to the looming economic slowdown.
Apple introduces 16GB iPhone, 32GB iPod touch models – AppleInsider, Feb 5 2008
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I was always amazed that the iPod sold as well as it did after the iPhone came out.