I expected this annoucement last month during MacWorld, but better late than never.. I’ve been holding off on getting an iPhone, as I need more than 8GB of memory. But I sure as hell won’t spend $499 for the new 16GB version! And where’s the 3G support?!

The official press release:

Apple Inc. updated its iPhone and iPod Touch lineup Tuesday, doubling the memory and setting a new premium price for its high-end models.

The latest iPhone features 16 gigabytes of memory and retails for $499. The previously released 8 GB version of the hybrid cell phone, multimedia player and wireless Internet device costs $399.

The new iPod Touch comes with 32 GB of memory and retails for $499. The older 16 GB and 8 GB versions of the combination multimedia player wireless Internet gadget cost $399 and $299, respectively.

Apple said that all iPhone and iPod Touch models come with updated software that the company announced in January. It includes a new maps application and the ability to watch movies from the iTunes movie rental service.