Apple launched a 64GB iPhone 4S in October last year when few were expecting such a move given that Apple was putting so much emphasis on the iCloud and cloud computing in general.
However, given the fact that the iPad 2 64GB 3G, the most expensive mode, is also the most popular, it would make sense for Apple to introduce a 128GB model especially given the low contract price of 64GB NAND Flash.
16 NAND 64Gb (8Gx8) MLC chips would cost an average of $81 according to the latest updated price list on Dramexchange, a global memory transaction website, at the time of writing. That's just slightly more than what iSuppli quoted as the cost of memory for the iPhone 4S ($76.80 for 64GB).
There's also the not-so-insignificant bragging rights. There's no phone on the market with 64GB onboard (although you could get 32GB ones like the N900 and shove another 32GB microSD) and if you want one, you can only get it via the iPhone 4S.
Similarly, although there are a few 64GB tablets on the market (Samsung Galaxy Tab, RIM BlackBerry PlayBook), there are no 128GB ones which means that launching one would give Apple a pretty unique opportunity to create and own a market all to itself.
How much would the tablet cost? Well, doubling the storage capacity from the 16GB iPad 2 to a 32GB cost the same as doubling the onboard storage size from 32GB to 64GB - £80. We wouldn't be surprised if Apple pegged it at £639.
ITProPortal.com will be live-blogging the event from London, covering the pre-iPad 3 buzz happening over the weekend and the launch on Wednesday 7th. You can follow our real-time thread.