I said or seen most of this in other threads but I think it deserves it's own It's an interesting question as to whether the Touch is reaching the end of it's life. They could but not necessarily will come out with a new Nano iPhone that will have no cell phone contract. It would be able to connect with 3G to get data under a data only contract. If they do so and price it under the regular iPhones it would have the effect of making the Touch obsolete. The latest rumors say that a next iPhone will be completely redesigned and might look more like a Touch. http://thisismynext.com/2011/04/22/iphone-5-design/ "the design of the phone is set to radically change (a completely redesigned handset). Our sources say the new model (or at least one of the new designs in testing) looks more like the iPod touch than the iPhone 4. The phone will be thinner than the iPhone 4, and may have a teardrop shape which goes from thick to thin (something along the lines of the MacBook Air profile)." TUAW also discusses an iPhone that also would obsolete the Touch as it now exists: http://www.tuaw.com/2011/06/18/point-counterpoint-on-the-iphone-5-replacing-the-ipod-touch/ Also this site has some interesting thoughts on the Touch being discontinued: http://www.cloudfour.com/ditching-the-training-wheels-why-the-ipod-touch-will-be-discontinued/ If they can make an iPhone that is not much thicker than a Touch and at the same cost then it ceases to make any sense to keep them separate. It just could be that the future for the Touch is in becoming the Phat Touch that has been rumored. A larger game centric device springing from the ashes of the old Touch. That would actually make a lot of sense for Apple.. I'm getting to the point where I think it would be a better move to just buy a used iPhone with no contract rather than a new Touch that doesn't have GPS and the other features that the iPhones have over the Touch. If they offer a Nano iPhone at the same Touch price I'd be sold and if not then I'll be on eBay looking for a used iPhone 4 or 3GS. If you want to discuss, great but please read the offered links and don't waste space by just saying it won't happen or it can't happen because you don't like it. Give some solid reasons. Sounds real interesting and coming eventually, if not this year then next but with the delayed iPhone(s) announcement until September and that Touches will no longer be given as free promotions this Fall it sounds like the time is more likely sooner than later.