THE FRUITY FOLKS in Cappuccino have finally launched a 16GB version of the Iphone.
The Ipod touch, which uses the same software and hardware as the Iphone, was launched with a 16GB capacity in September last year, so there's no surprise that the same flash chip has made its way into the Iphone.
Currently, the device is up on Apple's US store for $499, but there's no sign of it either on Apple's UK site or the O2 home page. However, the venerable gear geeks at Engadget reckon that the new model should be available from O2 stores this afternoon, since the device is readily available. Expect it to cost £350, up from the £270 you have to fork out for the 8GB version.
The Ipod touch, for those keeping track, has also had its storage upgraded to a maximum of 32GB. So expect a 32GB Iphone in about, oooh, five months. µ
I highly doubt you will see that in a few months like that. With the lack of space on the iPhone's circuit card, seriously limits this expansion so quick. 

The Touch will always have twice the memory cause it has room for 2 of the chips that the iPhone uses. The possibility of a 32GB chip to get tossed in there in 5 months i unlikely. 3G on the other hand is a great possibility.
16GB iPhone - £329
32GB Touch - £329 


16GB iPhone - £329 + £35pm 18 month contract
32GB Touch - £329