Rumor: iPod Touches To Have Cameras and Microphones.

A well-connected source has told Wired that Apple's factories in China have already begun manufacturing iPod Touch models with integrated cameras and microphones. These iPods are expected to hit in a couple of months during Apple's second annual announcement of upgrades to its line of products.

The inclusion of a microphone to the iPod Touch might mean a huge shift in the way we do voice communications. With apps like fring that already provide voice-over-IP and Skype due to be released soon, future iPod Touch users would be able to make calls whenever WiFi is available just like iPhone users. So this means not needing a home phone line and the ability to call overseas for cheap. You could even use the WiFi available in public places like the library to make calls.

Adding this function to the camera (which will be able to take both pictures and video) and you'll have an all-in-one multimedia device costing from $389 to $659. A significant price gap between them and the $1179 and $1379 iPhone 3GS Vodafone is asking for.

Source: Digital Kiwi