February 5, 2008

Apple Upgrades iPhone, iTouch Memory

On Tuesday, Apple Inc. introduced models of its iPhone and iPod touch devices with double the memory available in previous versions.

The newly updated products were released on the heels of Apple's launch last month of a service that lets iPhone and iPod users rent and download movies to watch on their devices.

"There are a lot of users out there for whom there is never enough memory," Greg Joswiak, Apple's head of global marketing for iPod and iPhone told Reuters.

"We've given people more and more content that they can put on their iPhones," Joswiak added.

In January Apple said that it had sold more than 4 million iPhones since sales began last June. The company will now offer an iPhone with 16 gigabytes of flash memory, the kind that stores data on microchips instead of a spinning disk drive.

The iPod touch, a wireless touch-screen device that plays music and videos, now comes in a 32-gigabyte model.

Both of the new devices will sell for $499.

Apple's iPhone with 8 gigabytes of memory will remain at $399. A 16-gigabyte version of the iPod touch remains at $399 and an 8-gigabyte model, at $299.

The updated models come amid a slump in Apple's stock, due to fears that a U.S. recession could make consumers less likely to buy its iPods, Mac computers or other products.

Asked whether Apple expected the new models to boost sales, Joswiak told Reuters: "We always put our products out there and hope the market likes them. The higher-capacity models have always done well."

Apple shares were up 30 cents at $131.95 in morning NASDAQ trade. The stock has fallen more than 33 percent so far this year.

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