The iPhone and iPod touch could get up to $100 (£50) knocked off their retail price at the end of February - which is when Apple is also said to be holding a 'special event', which will probably focus on the iPhone Software Development Kit (SDK).
Apple could also drop the 8GB iPod touch from its line-up, which also includes the 16GB and new 32GB models. 9to5 Mac reckons it would make sense if the 8GB iPhone was dropped too - although commentors on the site have pointed out that a cheaper 8GB iPhone would help deliver even greater sales.
Price cuts for both models at this point would make sense. Apple has been repeatedly scaling back production of both iPods and the iPhone in recent weeks, according to reports. And that's sure sign that sales of both are soft.
Any price cut could also help Apple clear out its iPhone inventory ahead of the launch of a 3G model, which is expected to arrive later this year - Forbes puts its arrival as early as May, although Apple maintains that a 3G model won't arrive until 'later this year.'
Apple may also be considering a price cut to bolster sales of the iPhone, which now also faces stiff competition from a range of new handsets being launched at Mobile World Congress.
If the price cut does happen, it will be the second time that Apple has slashed the price of the iPhone since its US launch in July 2007. Apple knocked $200 (£100) off the price last September, causing widespread anger among iPhone early adopters.
That's because they had paid $599 for a device that had fallen in price to $399 within the space of two months. Apple CEO Steve Jobs was forced to apologise in an open letter and offered a $100 (£50) Apple Store rebate to those who felt hard done by.