The launch of Nokia's flagship, touchscreen and QWERTY N97 has already
sparked the inevitable "iPhone Killer" comparisons.  Without getting
all into that, it is worth mentioning that the N97 will pack a whopping
32GB of internal memory backed by a microSD card slot officially
capable of supporting another 16GB of storage when the phone ships
sometime in the first half of next year.

Apple's iPhone 3G currently tops out at 16GB of fixed internal
memory, but rumors are already kicking around about a possible storage
bump to be unveiled at Apple's MacWorld conference in San Francisco
next January.  The current iPhone houses a single NAND Flash memory
chip which maxes out at 16GB of storage (Apple's iPod Touch media
player holds two of these chips and achieves a max capacity of 32GB). 
Toshiba has already announced that they will be shipping a 32GB version
of this chip before the end of this year, which would give Apple the
option of launching a 32GB iPhone without changing its industrial
design.

MacRumors.com is also speculating that Apple could switch to Intel Flash chips, as the industry giant has also announced a new line of memory.  Intel's chips will support 32GB each - bumping iPhone's capacity to 64GB - and are slated to ship by early 2009.