The comparison between the iPod Touch and the iPhone is an apples-and-oranges issue, but there's clearly some psychology involved in the price difference betwee

The comparison between the iPod Touch and the iPhone is an apples-and-oranges issue, but there's clearly some psychology involved in the price difference between the $229 8GB and $299 32GB version. The $229 model seems to serve as an anchor price at the bottom end of the range that makes the $299 or $399 look more attractive. $299 sounds like a great price for a 32GB model, a "way better deal" than the 8GB one, especially because I'm sure most people compare the price of an iPod in terms of dollars-per-gigabyte rather than the incremental cost of more flash. You also see it with AT&T's smartphone data plans -- you feel you're getting some kind of a deal with a $25/month 2GB plan, because the $15/month 200MB plan is utterly terrible in comparison.