Apple Doubles Storage on iPhone and iPod Touch (NewsFactor)

The iPhone and iPod Touch are getting fatter. Apple announced Tuesday that it will release a new 16GB iPhone and a 32GB iPod Touch, doubling the storage for each device.

Apple Vice President Greg Joswiak said theres now more room for music, photos and videos on what he described as "the most revolutionary mobile phone and best Wi-Fi mobile device in the world."

WAITING FOR 3G

The 16GB iPhone will sell for $499, $100 more than the current top-of-the-line 8GB model. The 32GB iPod Touch will also cost $499.

The new versions include software enhancements announced last month by Apple. They include the ability to find the users location with the new Maps application, making Web Clips of favorite sites, and customizing a home screen. Web Clips are icons of favorite Web sites, and they take the user from the home screen directly to the site.

Chris Hazelton, an analyst with industry research firm IDC, noted that both devices will support Apples new video rentals through the iTunes Store. He said the new iPhone will mean additional revenue with the step-up in price, but it wont significantly increase user growth.

What will increase the user base, he noted, is the release of a 3G iPhone, which is expected by the end of this year. "There is some pent-up demand among people who are waiting for the 3G version" before buying the device, he said.

IMPACTING MOVIE RENTAL PLAN?

If the new devices do sell well, they could boost Apples movie rentals. When the service was released last month during Steve Jobs keynote speech at Macworld, many observers said it could shake up the way movies are distributed over the Net, just as iTunes did for music.

The iTunes Store offers feature films from the major studios, including 20th Century Fox, Disney, Warner Bros., Paramount, Universal, Sony, MGM, Lionsgate and New Line. Once rented, a movie can be watched any time within 30 days and, once a customer has started to watch it, he or she has a 24-hour window to finish it or watch it again.

Library titles will rent for $2.99, new releases will cost $3.99, and rentals can be watched on Macs, PCs, iPods, iPhones or Apple TVs. High-definition titles are available for a dollar more.

At MacWorld, Apple also introduced Digital Copy for iTunes, along with 20th Century Fox. It provides an additional digital copy of a movie on a purchased DVD, which can be transferred to iTunes and watched on the same devices as an iTunes rental, including the iPhone and iPod.