A premium iPhone with 16 gigabytes of memory and a 499 dollar price tag is now the top of that line, ahead of a model with half the memory and a price of 399 dollars.
An iPod Touch with 32 gigabytes of memory costs 499 dollars, relegating the 399 dollar 16-gigabyte model to second position. Apple sells an eight-gigabyte iPod Touch for 299 dollars.
"For some users, there's never enough memory," said Apple vice president for iPod and iPhone marketing, Greg Joswiak.
Apple chief executive, Steve Jobs says the California Company has sold more than four million iPhones, touch-screen mobile devices combining telephone, video, music, and Internet connectivity.
IPod Touch models are essentially iPhones without the mobile telephone capabilities.
Apple's enhancement of memory capacities in its devices comes a month after the company added a movie rental service to its iTunes online entertainment store menu.
IPhone and iPod Touch models can download and present content from iTunes.