9to5Mac believes that the iPhone and iPod touch will be seeing $100 price drops in the next two months, simultaneously discontinuing the low capacity models.
Their belief is that the 8GB Touch and 8GB iPhone will be discontinued, leaving a 16GB iPhone at $399, 16GB Touch at $299, and 32GB Touch at $399.
The move would be reminiscent of the
$200 iPhone price drop and discontinuation of the 4GB iPhone that took place in September, 2007. The surprise iPhone price drop -- only 3 months after the introduction of the iPhone -- caused an outcry amongst early adopters. The outcry was so great, that Steve Jobs
posted an open letter to explain the decision and gave existing iPhone owners a $100 Apple store credit.