Plenty of Apple iPod (opens in new tab) rumours have circulated in the past few months but this time they're giving us a bit more detail. Apple is reportedly developing a 2-inch-square flash-based Apple iPod that may be called the Apple iPod Touch. The device is going to play back video, and cost $299 and $399 (£147 and £196) for the 4GB and 8GB models, 9 to 5 Mac has reported.
The new Apple iPod Touch would essentially be an Apple iPhone (opens in new tab) minus the phone capabilities, which is what Apple is expected to announce at some point. A sixth-generation Apple iPod with a 16:9 widescreen and a touchscreen interface is also expected later this autumn.
The fifth-generation Apple iPod is getting cheaper ahead of the possible release of an updated model. Various online US retailers, including Amazon.com (opens in new tab) , have slashed Apple iPod 5.5G prices by around $20 (£9.84), applicable to both 30GB and 80GB versions.
Apple share price falls on rumours
Apple's shares fell nearly 7 per cent to $131.76 (£64.83) yesterday - the lowest close since early July - following speculation of production cuts of the Apple iPhone and Apple iPod, Reuters has reported. The rumours have subsequently turned out to be unsubstantiated, based on false reports of analyst research notes.
"There are occasional rumours on Apple, often unconfirmed. A lot of them end up being wrong or short-term," Shaw Wu, an analyst with American Technology Research, told the news agency.
We'll bring you the latest from the Apple event, to be held at the firm's headquarters in Cupertino, CA, as it happens next Tuesday, 7 August.