Last week rumors started to arise that a $100 price drop for the iPod Touch and iPhone is very likely. This will mean the 8GB Touch will be prices at $199, 16GB at $299, and the new 32GB at $399 respectably.

Also speculators are saying that if this in fact happens Apple will drop the 8GB model altogether. This resembles Apples drop to the iPhone in September which outraged many early adopters.

This drop is rumored to be at the end of this month at the SDK launch event (There has been no conformation of this event and is just a likely rumor)