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In line with a fresh report from KGI Securities analyst Ming-Chi Kuo claiming that Apple will be updating the iPod touch later this year with an "all-new" design using the same in-cell touch display technology rumored to be used in the next iPhone, Japanese blog Mac Otakara reports that Apple will also be moving the iPod touch to a 4-inch display from the current 3.5-inch display. Apple is otherwise said to be basing the iPod touch's internals on the iPhone 4S, although the case will include a "buffed aluminum" rear shell rather than the glass back of the iPhone 4S or the mirrored stainless steel of the current iPod touch.
According to asian source, new iPod touch (5th generation) will have 4 inch LCD which is the same size with coming iPhone 5.

CPU or other spec is considered to be same with iPhone 4S, and has different back-case design, which will be not mirror polished but buffed alminum one. And it seems to be prepared black and white color model.
macotakara_ipod_touch_2012_mockup.jpg
Rough mockup of fifth-generation iPod touch with buffed aluminum rear shell and larger display
The report's source also indicates that there is an additional hole in the lower portion of the rear shell, separate from the camera found on the current model. It is, however, currently unknown what the function of the hole will be.

Article Link: Apple to Update iPod Touch with 4-Inch Display, A5 Chip, Buffed Aluminum Rear Shell?
 
Meh, I feel like the 4 inch iPhone/iPod and the 7.85 inch iPad Mini rumors is all we talk about. How about OS X Mountain Lion? I'm ready for that :D
 
That render is extremely rough. I would like to see an iPod touch with iPhone 4S internals and the oft-rumored 4 in display and maybe even Siri. Kinda wanting the glass sandwich though... Though a brushed aluminum back would look nice and remind me of the OG iPhone. :)
 
Don't like the rendering, but it is time for an update to the iPod touch. Hope to see Siri, A5, 4 inch screen.
 
I wonder how they would price the next gen touch.

If rumors are correct that the so called "iPad mini" would be around the 200-300 price range, then the new touch would be around 100-150.

But now, where does that leave the nano which is priced around 110-120?
 
Good news for the iPod touch community! They need an update/refresh indeed.

The iPod touch community is kids whose parents won't spring for an iPhone yet. It's like an iPhone with training wheels. They don't need an update because soon they are older and get their own damn phone. Come on Mom, I'm going to college, how am I gonna call you and ask for money.
 
"buffed aluminum shell"

FINALLY.

iPods look terrible after a while because of the back.
 
The day they sell an iPod touch with 3G capabilities, I will be so happy. Really want a revamped iPod.
 
I think I've cracked Apple's rumor strategy. Tell one rumor source who thinks they're exclusive one thing, tell another rumor source who thinks they're exclusive the opposite thing.

The next iPhone is in production already, the next iPhone is still in development.

It doesn't matter, deliver an awesome phone. Oh, and Lion and the next iMac. Mostly the next iMac. My iPhone is kind of a time sink with lousy battery life.
 
Siri is not a marketable feature for a highly portable Wi-Fi device IMHO. It would be hard to explain what's better about this new model without giving it a different form factor. The last iPod touch had a Retina display, and for all the hype around Infinity Blade, most App Stores games are still relatively casual and easy on the CPU.
 
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