Apple Preparing iPod Touch With Camera, Microphone: Source

Rumors have swirled about Apple readying a new version of the iPod Touch with a camera and microphone, which, combined with a Skype account, would pretty much obviate the need for a home phone line once and for all.

A well-connected source tells us those rumors are on the money, and that Apple’s factories in China are already manufacturing iPod Touch models with integrated cameras and microphones. An Apple spokesman declined to comment when reached by phone.

If iPod Touches with cameras and microphones go on sale “in two to three months,” as our source expects them to (and which corresponds with our expected timeframe), they will transform the entertainment-oriented iPod Touch line into a voice communications tool wherever WiFi is available.

In addition to these voice-over-IP capabilities, which should have telephone providers quaking in their boots, the microphone (and camera) would enable the iPod Touch to understand voice commands, capture video and images, and work with a wider variety of programs in the App Store.

(Plus, as some Wired commenters have suggested, one could combine a microphone-equipped iPod Touch with the Verizon MiFi personal hotspot creator to enable — at long last — the iPhone experience on Verizon’s network.)

NEW APPLE IPOD

“iPod touch is the funnest iPod we’ve ever created,” said Steve Jobs, Apple’s CEO. “Users can listen to millions of songs, watch thousands of Hollywood movies and now, thanks to the App Store, download and play hundreds of great games on their iPod touch.”

The owners of new iPod touch can select hundreds of exciting game titles on iTunes or directly through revolutionary App Store application on iPod touch, including ‘Spore Origins’ and ‘Scrabble’ from Electronic Arts, and ‘Real Football 2009′ from Gameloft.

In addition, the new iPod touch which incorporates a brilliant 3.5-inch widescreen glass display and 802.11 b/g Wi-Fi wireless networking is able to support up to 36 hours for music playback or 6 hours for video playback.

According to the release, “The iPod is the world’s most popular family of digital music players with over 160 million sold. Apple’s incredible new lineup includes the iPod shuffle in four vivid new colors starting at just $49; the iPod classic in one slimline model with 50 percent more capacity for the same great price—120GB of storage for just $249; the fourth generation iPod nano featuring a gorgeous curved metal and curved glass enclosure, in nine vibrant colors starting at $149; and the second generation iPod touch now starting at just $229. iPod owners can choose from a vast ecosystem of accessories with over 5,000 products made specifically for the iPod including speaker systems, fitness accessories, fashionable cases and iPod connectivity available in over 90 percent of new car models sold in the US.”

The new iPod Touch that come in 8GB, 16GB and 32GB memory capacities are now available for $229, $299 and $399, respectively.