http://www.electronista.com/articles/08/08/06/toshiba.32gb.flash/ Toshiba apparently now has a 32GB flash chip for portable devices and they're a key Apple supplier. I would at least expect to see a 64GB iPod Touch at this September Apple event that I read about somewhere (was that here?). The iPhone is its own beast, and Apple may wait on upgrading it. If they do, I'm laying down the house that they put the 32GB model at $399 so the people buying the 16GB now down complain like nobody's business. I also remember seeing something about an order for millions of flash chips, so they would need to deplete that stock, and I don't see a $149 or $99 iPhone happening (yet!).