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iPod Touch, iTablet rumor update

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As fall approaches, the traditional season for iPod launches, new reports from Chinese manufacturers are lending further support to rumors of an iPod Touch with video and some kind of Apple tablet-netbook device.

The last round of rumors was sparked by reports of large orders for iPhone-style camera modules.

This time, according to Wired magazine, the news from "a well-connected source" is that the Chinese factories that build iPods are already turning out iPod Touch modes with both cameras and microphones.

The source says to look for the devices to go on sale in "two to three months."

Adding a microphone and the (already available) Skype app to the iPod Touch's existing WiFi capability could theoretically turn the device into a VoIP mobile phone, throwing a wrench into the existing carrier-bound smartphone market.

It would also enable the Touch to be controlled with voice commands, the same way the iPhone now is.

Adding a camera could also throw a wrench into the growing market for pocket-size video cameras such as the Flip.

The iPhone already includes basic video editing software and the ability to post video directly to YouTube. A lot will depend on how an iPod Touch with Video is priced, of course.

For the latest on an Apple tablet, see Page 2.