Next-Generation iPod touch Could Become a Wi-Fi Phone

Apple is expected to release a new iPod touch in the coming months that will be the first with a built-in microphone, potentially potentially allowing it to make phone calls over a Wi-Fi connection.

The iPod touch is sometimes described as an iPhone without the phone, but if Apple does add a microphone to the next model any of the VoIP apps that are already available for Apple's mobile devices would let users call other VoIP-enabled computers, or even mobile phones or landlines.

Naturally, it still wouldn't be a flexible as an iPhone -- calls could only be made or received near a hotspot -- but it would still be a significant enhancement for this handheld.

It should be pointed out that it's possible to use VoIP software with current iPod touch models, but it requires a pair of headphones with a built-in microphone. The upcoming model supposedly won't have this limitation.

Other New Features
The source for this information -- an unconfirmed report on Wired.com -- goes on to say that the next generation iPod touch will also be the first with a camera.

This has been rumored before, and previous reports also indicated that this upcoming model will get video recording and editing, just like the recently-released iPhone 3G S.

A new version of the system software for all Apple's mobile devices was released in June, and many of the enhancements in its next handheld computer will come from this. At the top of this list are support for cut-copy-and-paste, Stereo Bluetooth, and peer-to-peer gaming.

Apple is currently expected to release the next iPod touch in September.

Source: Wired.com