20 GB and 40 GB iPods Debut -- Apple today announced the release of 20 GB and 40 GB iPods, replacing the 15 GB and 30 GB models in the current lineup. The 10 GB model remains available for $300, the 20 GB model is $400, and the 40 GB model costs $500. There are no other changes. The larger drives are certainly welcome, and it's interesting to see Apple taking advantage of hard drive size increases and price reductions by increasing iPod storage capacity while keeping prices static. Although a much cheaper iPod would undoubtedly be welcome, the economics of hard drive manufacturing often result in this sort of pattern, so Apple may not have too much room to maneuver, particularly while maintaining the iPod's high margins. It's hard to argue too much, given that the one million iPods Apple has sold so far have undoubtedly helped the company's financial position. [ACE]

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