If you didn't think this upcoming holiday season could get any hotter for Apple (Nasdaq: AAPL), just wait. It's clear that Apple's iPad and iPhone 4 will be brisk sellers, but it may be time to consider the refreshed iPod touch as the mother of all stocking-stuffers.
Apple hasn't gone public with its upgrade plans for the iPhone-esque model in its line of portable media gadgets. However, British retailer John Lewis is already briefing employees on the update, based on what it's hearing from its suppliers.
According to the presentation, as retold by tech blog Electric Pig, a September refresh will add plenty of drool-worthy features to Apple's iconic iPod touch.
- Right now, the iPod touch doesn't come with a camera like the iPod nano. John Lewis is reporting that the iPod touch will incorporate a 5-megapixel camera that can also capture HD video (just like the new iPhone 4). If true, this is going to be a major blow to Cisco's (Nasdaq: CSCO) Flip camcorder empire. It even presumably will allow for flash photography.
- An accelerometer and gyroscope will be added to enhance gaming features. If true, this would undoubtedly add a few more gray hairs at Sony (NYSE: SNE) and Nintendo (OTCBB: NTDOY.PK) in the handheld gaming space.
- The new iPod touch will also incorporate the FaceTime video chat feature that is part of the iPhone 4. It's certainly feasible; AT&T (NYSE: T) doesn't allow FaceTime to run on its network, so it's perfect fodder for the Wi-Fi-connected iPod touch.
Color me skeptical on the specs.
For starters, it seems unlikely that Apple would make its iPod touch more feature-rich than its iPhone 3GS. A camera certainly makes sense in its next update, but a flash-ready HD camcorder may be too much to hold out hope for.
I'm also doubtful about the FaceTime claim. This would involve installing two cameras in a device that currently has none. You need a front and a rear-facing camera to make it work.
Apple can afford to take its time with only marginal upgrades every year. It's not as if SanDisk's (Nasdaq: SNDK) Sansa or Microsoft's (Nasdaq: MSFT) Zune pose any kind of competitive threat to Apple's dominance in portable media players, forcing it into desperate upgrades.
Let the speculation begin. Until an employee happens to leave a prototype behind in a bar, or Steve Jobs summons the faithful to California, we'll be in the dark.
Please Christmas, don't be late.
What features would you like to see in the iPod touch? Share your thoughts in the comment box below.
