Apple releases 16GB iPhone for $499

Apple has added a new iPhone to its lineup: a 16GB version that's priced at $499. The handset has twice the memory of the next most expensive model, the 8GB iPhone, which retails for $399. Apple dropped its 4GB iPhone, which it originally launched along with the 8GB version last summer.

"For some users, there's never enough memory," said Greg Joswiak, Apple's vice president of Worldwide iPod and iPhone Product Marketing.

For more on the bigger iPhone:
- read this press release