Finally, the puny storage of the iPod Touch is updated with something approaching desirable. Now all they need to do is bring the price down.

Apple Inc. launched a 16-gigabyte iPhone and a 32-gigabyte iPod Touch Tuesday, doubling the maximum memory previously available in each device. [Wall Street Journal]

The iPhone is now available with 8GB (at $399US) or 16GB (at $499US) of storage. The iPod touch is now available in three models; 8GB ($299US), 16GB($399US) and 32GB($499US). Note that the 16GB iPhone and the 32GB iPod touch are both $499, while there’s a one hundred dollar difference between the 16GB iPhone and the 16GB iPod model. [TUAW]