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According to some rumors, the next generation iPod Touch will feature 64GB capacity and GPS functionality. However, there is no official confirmation from Apple so far. Stay tuned for more updates. [UberGizmo]
David99 says:
I wouldn’t hold my breath for 3G on the replacement for the iPOD touch - look at it this way. The new iPhone cost is so low because Apple made a deal with AT&T to subsidize the cost. In return, AT&T get’s everyone to buy a 2 year contract. So - the real question is how will Apple sell a new iPod touch that is going to have a retail cost that is now more than the new iPhone? Apple won’t sell it for less than it costs to manufacture and I don’t believe that Apple will take a much lower profit margin just to price it lower than the subsidized priced iPhone. Added features like 3G and 64GB of FLASH cost a lot of money (not to mention larger PCB space).