Official: 16GB iPhone available and 32GB iPod touch — both $499

Out of the rumor mill comes the 16GB iPhone, now official. Ever since the 16GB iPod touch was announced in September, we all knew it was just a matter of time until Apple could bung the same NAND capacity into their chubbier iPhone. The surprise is a new 32GB iPod touch for the same $499. No other changes and certainly not 3G. Both are available immediately.

-Engadget.com