9to5Mac has received word that Apple is planning on dropping the prices on the iPhone and iPod line within the next month or two - perhaps at the rumoured late-February event.

The price cut is said to be $100 on both the iPod touch and iPhone lines - and the 8GB iPod touch will apparently be dropped from the line-up just as the 4GB version of the iPhone was before it.

If true, this means that the 16GB iPhone will be $399 - the current price for the 8GB version and the 32GB iPod touch will come in at $399 too.

Following the same cost cut pattern, considering the difference in pricing, this means the UK could expect to see the 32GB iPod touch and 16GB iPhone both at £269.

9to5Mac predicts the price drops are in order to make way for "pricing space" for the 3G iPhone, expected this year.

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