Fresh rumors from a UK retailers are suggesting that Apple might soon come up with the next generation of iPod touch, which would be dubbed as iPod touch 4G this year.

According to John Lewis, which cites, “noises we’re hearing from suppliers”, the next-gen device will be equipped for FaceTime Wi-Fi video chat, with a 5-megapixel camera, a front-facing camera, an LED flash and the capacity to capture video in HD (720p probably).

Along with all these features, the next generation iPod touch 4G might also have a better accelerometer and gyroscope for better gaming experience. Estimating from the features it would offer, we can make a rough guess that Apple might be using A4 processors which they used in iPhone 4 and iPad to power up the iPod touch 4G.

Though its still all a big rumor currently circulating the twitter world and blogosphere, we can predict from experience that there is a very high chance that Apple would NOT do this in the near future, as it would definitely kill the sales of iPhone 4, because if it happens, then who would be willing to ditch their favorite carrier and spend hundreds of bucks to add the functionality of phone only, to something that is  already selling in the market for more than hundred dollars less (Keep in mind that Apple has kept the price for iPod touch lower than the iPhone). This also defines why the iPod touch was not launched with a camera initially.

Apple Media Event is expected to be held in the months of september this year, where we would possibly get to know more about this next generation iPod touch.

[via 9to5Mac]