The new iPod video will also come with a wide-screen panel, high storage capacity and Wi-Fi connectivity, the sources indicated. In addition, the new iPod video is expected to be powered by NAND flash, instead of a hard disk drive (HDD).
Apple is outsourcing the production of the new iPod video to Taiwan-based Inventec Appliances, which is expected to start volume shipments by the end of this month or in early October, the sources noted.
Apple's new products will also include a new iPod Nano and iPod Shuffle, to cash in on the upcoming Christmas season, stated the sources, who also noted that sales of the new iPod series is expected to total 22-23 million units in the fourth quarter of this year.
Here's the new case for the new Nano; it looks a lot like the purported spy shot of the new machine.