New iPhone, iPod Touch models have higher capacity

Apple continued its trend towards flash memory on Tuesday, announcing two new models of both the iPhone and iPod Touch with additional capacity.

Both new models will be available immediately: a 16 GB model of the iPhone for $499 and a 32 GB iPod Touch, also for $499. With the new Touch, it marks the first time a flash-based iPod exceeds the hard-drive models in terms of capacity.

NAND flash has become the storage format of choice for music players as of late. However, with flash memory at higher capacities still rather pricey, its unlikely that these new higher capacity players will see heavy sales.

For example, with the 32 GB Touch at $499, a HDD-based iPod could be bought with 30 GB capacity at $249. But price, in some cases has proven to not be a deterrent -- some consumers seem to prefer the generally smaller size and longer battery life that flash-based players provide.

The previous models of both devices will remain at the same price, Apple said. The 8 GB Touch and iPhone retail for $299 and $399 respectively, and the 16 GB Touch for $399 USD.