Apple Brasil: iPod Touch significant price drops a precursor event to iPhone arriving?

This week all the iPod touch models have dropped several hundred reais. The 8GB model was down adjusted from R$1499 to R$1099. In my opinion this is happening to avoid having the touch at a higher or the same price point than the upcoming brazilian iPhone. I am guessing that an 8GB iPhone should be sold for R$1499 if there is no contract. I am also hoping that WITH a contract it could come down half that. Expectation is building!