Tuesday, February 5, 2008

Apple Releases Higher-Capacity Models of the iPhone and iPod touch

Today Apple announced a 16GB iPhone and a 32 GB iPod touch, both retailing for $499 and both available immediately. These updates show the increase in flash memory capacity that is being able to be smooshed onto a chip small enough to have a very large 32GB of flash memory in something as thin as the touch. The 16GB built-in to the iPhone way outdoes any other smartphone and 32GB in the touch gives it enough memory to be more comparable to recent iPods (like the 5G 30GB HDD model) in capacity and yet the touch has a very responsive full touch screen, amazing wi-fi capabilities, is so thin and can sustain such a long battery life. These two additions should also carry higher margins for Apple as the higher-capacity iPods and iPhones have in the past because they require only one component to be switched out and Apple can add a proportionally higher amount onto the retail price than it costs them for the component. The base cost of everything but the different component has also already been factored into the cost of the lower capacity versions of the same device.

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