The tubbier Touch

The iPhone now comes in two models, the existing 8GB model for US$399 and the new 16GB model. The upgrade doesn't come without a cost, though - Apple nudged the price for the 16GB iPhone up to $499.

The iPod touch now comes in a 32GB model for $499, with 16GB and 8GB options for $399 and $299, respectively.

"For some users, there's never enough memory," noted Greg Joswiak, Apple's vice president of Worldwide iPod and iPhone Product Marketing.

Apple recently unveiled new applications for both devices, and a software developer kit in the works promises even more programs.

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