Apple will be holding their annual Macworld Expo in San Francisco from January 5th to the 9th. Here Apple is expected to announce new products as they usually do. There are plenty of rumors as to what they will announce, but the one that really sticks out is the rumored unveiling of the 32GB iPhone 3G.

This rumor does not have much behind it suggesting that it may not be true, but the timing and the hopes of all of us has got to conjure up something. The current iPod Touch 2G has double (32GB) the internal storage of the largest iPhone 3G (16GB). The iPod Touch can house two NAND Flash chips while the iPhone can only house one because of the phone components.

Toshiba may be the way to go after announcing the mass production of 32GB chips back in August to be released by Q4 2008. There is also the possibility that the 64GB chips to be introduced in early 2009 will come to the iPhone, but it seems highly unlikely.

[Via MacRumors]