Toshiba have been doing magical things with NAND flash, and have exited the lab excitedly clutching a 64GB embedded NAND flash memory module. Said to have the greatest capacity in the industry today, what's more interesting to us gadget hounds is that Toshiba are currently the NAND supplier of choice for Apple's iPhone 3GS, which until now has only been available in 16GB and 32GB capacities.
So, it's not too hard to imagine Apple picking up the new 64GB chip for their fourth-gen iPhone, tipped to arrive during the summer of 2010, as well as finding a place for it in the next-gen iPod touch. The PMP actually uses a pair of flash chips - currently at most 64GB in total - since it doesn't have to make room for a cellular radio, paving the way for a 128GB iPod touch. Of course, there's no official word from Toshiba or Apple on all this, but we're sure they wouldn't begrudge us some idle speculation.