The next-generation iPod touch will be upgrading to a 4-inch screen like the next iPhone, according to an Asian source for
Macotakara. The same source
suggests that the CPU and other specifications will otherwise be similar to the iPhone 4S -- which uses an A5 processor -- but that the back will be different from both the 4S and the fourth-gen Touch. Instead of glass, plastic, or polished metal, it will allegedly use "buffed" aluminum.
The black and white front-panel options introduced last fall should stay in place. One unexplained difference is that the rear is said to have an additional hole closer to the base, well away from the camera. It could theoretically be for a second microphone, something the new iPhone has been rumored as getting as well, though reports have so far indicated that the iPhone's extra mic would be situated between its camera lens and LED flash. A second mic would be useful for video recording as well as calculating noise reduction when using the front mic.