If the profit margins are about equal then who cares if the iPhone cannibalizes the touch (or vice versa)?
And then there's the phone aspect: if I need phone functionality I won't consider the touch even if it has better features or price. If I don't need a phone or don't want to commit to a $1500 or $2000 (2 year) cost then an iPhone won't tempt me away from buying an iPod touch no matter if it has more GB.
Basically I have a hard time seeing how one can cannibalize the other to any significant extent.
i thought that the reason the iphone has less storage is due to size constraints. i'm not positive but i thought the extra hardware in the iphone limited the amount of storage they could easily put in there.
Anyone know who Apple buys the flash drives from and what model they are? IT would be interesting to go to their supplier and see how much the 32 GB flash drives are selling for right now. Then we could see if a 64GB iPod Touch is likely soon.
Good point. If the Zen utilizes single flash drive as opposed to two 16gb drives, the possibility of seeing a 64gb touch come September seems higher. 🙂