Well informed sources have notified us that the rumors of a 5 mega-pixel camera coming to this fall’s iPod touch line may not have merit. They claim the new iPod touch will have a 3.2 megapixel camera that has similar characteristics to the one found in the iPhone 3GS. Update:Digitimes agrees.

This also takes us back to those iPod touch prototypes that we have seen to time to time. Just a few months ago we saw some prototypes show up on eBay and case manufactures even created cases for them in anticipation of their release last Fall.
Our source did not go into much detail but they do fit MacRumors’ discovery about camera sizes. Their report proves that a 5 mega-pixel camera simply won’t fit in the current design, let alone anything thinner (which Jobs and Ive love to push).
Also, Apple likes to create some distance between the features of the higher end iPhone and the lower end iPod touch. This would do exactly that.
Our informed sources have told us the design change would not follow past iPod touch update history. The iPod touch 1G to iPod touch 2G can be compared to the original iPhone to iPhone 3G design change. The iPhone 3G got a curved back and so did the second generation iPod touch.
The iPhone 3GS looked the same as the iPhone 3G and the iPod touch 3rd generation looks the same as the second generation. If part history would repeat itself, the 4th iPod touch would follow the same design elements brought to the iPhone 4.
Our sources say that this year, that won’t be the case. We assume it may be some new drastic change we have yet to see, or it will look just like the picture above. That would be odd though, for Apple to keep the same design for three generations of an iPod.
Thanks WS!


Aw crud. And I was so hyped up to expect… wait a minute. I have an iPhone 4. It’s thick enough to house a 5MP camera. Never mind.
I’ve been waiting for about 2 years now for a major update to the iPod Touch. The camera won’t enitce me as I rely on my Canon Powershot to take good photos. What will be the deal-breaker is whether or not the new iTouch will come equipped with the new Retina Display.
I wouldn’t hold my breath about the iPod Touch getting Retina Display this year. That would make the cost too expensive for most of the target demographic.
If Apple did put Retina Display in the iPod Touch this year, I would expect it would be a more expensive option. The base level iPod Touch will most likely have the same resolution.
The iPhone 4 costs, what, $184 to make? There’s absolutely nothing that says the iPod touch can’t get a Retina display at the current price points.
Nope.
The iPhone 4 PARTS cost about $184. However, that doesn’t include manufacturing, engineering, software development, shipping, advertising, warranty/support, or patent licensing.
So? That’s $25-$60 per device. Assume that the iPod touch 4 will be sold at $299 and $399 and bam: there’s your costs covered and Apple’s standard 25% profit per device.
What’s your source for $25 – $60 per device for manufacturing, engineering, software, support, warranty, packaging, shipping and patent rights?
I’m very interested in the cost of things, so the resources you used to determine this number would be very informative!
Keep in mind, you can now get a “no commitment” iPhone 4 16GB for $599 and 32GB for $699. If all features were equals sans the 3G chip, I wonder if the price difference would allow the Touch to be low enough to be attractively priced for its target market. Basically you can get all the iPhone 4 features now sans AT&T/3G. An iTouch targeted at a lower price would have to be using some less expensive components.
Current iPod Touchs are $199 16GB, $299 32GB, $399 64GB
I can’t see the $199 16GB Touch having feature parity with the $599 16GB iPhone 4.
I don’t think the 3G chip is the big price differentiator. Also remember the current Touch doesn’t have GPS.
They’re going to add the “gyro” ability for games.
That means you have to ask about camera (as article notes), GPS, Retina display and the impact on price and product differentiation.
I agree. The Touch has to be priced in a way that people can afford one for their kids. A $500 Touch seems out of line. If anything, Apple should want to drop the price of the Touch to retain market share and stay competitive.
The Touch without a Retina display and with a lesser, single 3MP camera would stay very competitive with the features of other devices on the market. Kids would be happy, parents would be happy. If a kid “needs” (haha) a more full featured device, an iPhone is an option (countless 13 year old kids already have cell phones; the $15 premium for a limited data plan makes an iPhone more affordable)
[...] back to something similar to first generation iPod touch design. (Remember: This follows what our sources told us back in early [...]