We haven’t seen a 32GB iPhone because memory/technology hadn’t been released until just the past few weeks. The iPod touch uses two 16GB chips, to get 32GB, and the iPhone only uses one chip. Now that Toshiba has released the 32GB NAND memory chip, we could see the 32GB iPhone before the holidays. With the new chips available, we could also see a 64GB iPod Touch. Just in time for everyone to max out their credit cards in December!

Mr. Jobs usually unviels some new products in September, so we’ll see if our predictions are right. We may also see a bunch of new colours for the iPhone, (like the iPod Nano has done in the past). I’m currently using the ultra-cool, retro, iPhone Edge, but I’ll upgrade to the 3G if a 32GB model comes out.