New models of the Apple mobile handset – iPhone as well as the iPod media player have been introduced in the market. These models have twice the memory of previous models. The lineup has been changed the second time in the last 6 months.

The new models include a 16 GB iPhone which will cost $499. There is also a 32 GB iPod also for the same price of $499. There is ample room for songs in the new iPod, seven thousand songs in fact. The iPhone can store about 3500.

To recap the events of the last six months, which have been eventful for the media player market, the Zune was released in new models recently which were far more popular than the initial Zunes. In addition, in September 2007, Apple had introduced what were then new models of the iPod, expanding the range of high end video devices.

According to Andy Hargreaves, Analyst at Pacific Crest Securities, the lower capacity devices would sell less as some of their prospective buyers would now go for the higher end models. Apple shares are expected to outperform.

With these new models of the iPod and iPhone, Apple lives up to its image of constant innovation for the better. 32 GB iPod, anyone?