Apples doubles capacity of iPhone and iPod Touch for $100

The iPhone and iPod Touch (and earlier the iPod) have done wonders for Apple, given the massive customer demand and the can't get enough of iPhone need of customers. I was watching a couple of iPhone users give a demo of the phone to friends who did not have the iPhone, and you literally see these people (admittedly geeks) were positively in love with the gadget; you really don't see that happen to people having other phones and gadgets.
Now Apple has decided to try and squeeze more money from people. Given that a lot of the buying of the iPhone used to happen for the higher-capacity 8 GB phone, it was natural for Apple to add more storage, and in the process, charge an additional $100. After all, why not make money when people are willing to give.

Apple doubled the capacity of the iPhone and the iPod Touch on Tuesday for an additional $100. The iPhone once again comes in two capacities: 8GB for $399 and now 16GB for $499. Apple sold 8GB and 4GB varieties on iPhone Day, but it discontinued the 4GB model after it cut the price of the 8GB model to $399. Something like 90 percent of all early iPhone buyers opted for the 8GB version.
And the iPod Touch can also store more music and videos now, with 32GB of capacity for $499. That device is now available in three versions, with Apple also selling a 16GB model for $399 and an 8GB model for $299.

There was a slight reduction in the sales figures for the previous quarter, something that should scare Apple to some degree. So the announcement of these new models should be a good answer to industry analysts, since there will be a number of users who will buy the highest capacity device, netting Apple an extra $100 in the process. The question however remains as to when Apple will overcome some of the shortcomings in the device, such as addressing 3G connectivity, and providing an inbuilt GPS solution.