9to5Mac believes that the iPhone and iPod touch could see a $100 price drop in the next two months. The move would also see Apple discontinuing the lower end models.
The rumour site speculates that Apple will scrap the 8GB iPod touch and iPhone, leaving a 16GB iPhone at $399, 16GB touch at $299, and 32GB touch at $399.
The move is highly reminiscent of the $200 price drop which happened in September 2007, the surprise price drop caused outcry amongst earlier adopters causing Apple to offer a $100 credit to those who initially bought the iPhone.
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