Alright Apple, spin this however you’d like, but the fact remains people want more memory at a better price. The “cool factor” is starting to wane and many iPhone adopters see their friends with inexpensive phones and iPod’s with lots more memory that still get the job done.

So, Mr. Jobs, get off your high-horse and eat the bitter pill of unmoved iPhone inventory. Yank out the low memory guts and replace it with more. Then you’ll be able to recoup some of your production and marketing costs.

Like I said in the article, Your Virtual iPhone, what I have works great and I am not switching until this product gets where it needs to be — and it will get there. To bad many will spend 2 to 3 times over what it would have cost to wait for the “right one.”

clipped from
Apple doubled the capacity of the iPhone and the iPod Touch on Tuesday for an additional $100.
Apple thinks that there’s still room for an 8GB iPhone in the mix, said Greg Joswiak, Apple’s vice president of worldwide iPod and iPhone product marketing. The first time around, people signaled pretty clearly that they wanted more than 4GB of storage, but he thinks that there’s still a “sweet spot” at 8GB of storage.

And the iPod Touch can also store more music and videos now, with 32GB of capacity for $499. That device is now available in three versions, with Apple also selling a 16GB model for $399 and an 8GB model for $299.