The 16 GB iPhone, which sells for $500, will not replace the 8 GB version, which remains $400. It is available through Apple.com, Apple's retail stores, and AT&T's retail and online stores.
The new iPod touch with 32 GB of storage sells for $500, joining the 16 GB model for $400 and the 8 GB model for $300. It is available worldwide from the Apple stores and authorized resellers.
Of course, these new models come with the latest software updates, which were introduced last month.
Why now?
The timing for this announcement is somewhat unusual. Apple's CEO Steve Jobs generally likes to make a big deal out of important announcements like this one, but for some reason passed up last month's MacWorld conference as a venue to show off these updated models.
Instead, the company simply posted a press release on its web site and began selling the new devices.
It's possible the timing of this announcement is related to the recent sharp drop in Apple's share price -- from $202 to $130 -- which many have credited on the dearth of compelling new products being introduced at MacWorld.
Half a step forward
Although no one is going to complain about greater storage in the iPhone, today's update doesn't include the feature many people have been
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Kate Gerwig, Editorial Director
waiting for: support for 3G wireless networks.
Although AT&T's CEO promised that a 3G model will arrive this year, today's announcement makes it fairly obvious that this version isn't going to be released any time soon.