Apple plans to cut iPhone and iPod touch prices "within weeks", a report claims.

The report speculates Apple will lop $100 off the cost of both devices soon, "perhaps at the late February event". The report - from 9to5 Mac - also claims Apple will phase out the 8GB model of iPod touch at that time.

These price cuts will help generate new sales as Apple prepares to introduce new model 3G iPhones later this year, and reflect fallling memory prices in recent months.

Apple recently introduced new higher capacity iPhones and iPod touch models, each equipped with 16GB and 32GB maximum capacities.

The new raised capacities and speculation of price cuts should also help the company achieve the 10 million iPhone sales company management has aimed at achieving in 2008.