Apple Could Unveil Surprises For iPod Nano, Touch

Apple is ramping up for its annual blow out press conference Wednesday in San Francisco, where it is expected to announce a myriad of new and sophisticated features for impending releases of its iPod Nano and iPod Touch devices. Rumor has it that among the anticipated slew of product announcements could be a tiny square-shaped iPod Nano. Unlike previous iPod Nanos, the latest version could be made without the tiny iconic click wheel, but instead come with touch controls like a mini iPod Touch.

In addition to a touch screen interface, the new iPod Nano allegedly could come equipped with Wi-Fi connectivity and a 30-pin dock connector, according to AppleInsider

Evidentiary support came from Alibaba.com, a global online business-to-business trading platform, which is currently selling reduced-size Apple iPod paraphernalia, AppleInsider reports.

One seller, Jiangment VIPO Electronic Technology, manufactured a reduced-sized screen protection that it claimed to fit the impending sixth generation iPod Nano.

Another seller, Orient King, is offering smaller, square-shaped protective cases in an array of colors, designed to include the 30-pin dock connector.

Then again, Apple CEO Steve Jobs is known for pulling the rug out from under users at the last minute in the days leading up to iPod and iPhone launches. Last year, analysts and bloggers alike would have bet the rent on the new camera-enabled iPod Touch, but were unpleasantly surprised when the latest release was devoid of any picture-taking device -- despite the fact that the design appeared to have included a camera slot.

Apple said that the camera was taken out at the last minute to make the iPod more affordable, but rumors quickly surfaced that technical difficulties eventually led to its removal.

However, in the case of the iPod Nano, the evidence is almost too much to ignore. And analysts say that iPod market has neared a saturation point. Apple's third quarter results in July showed an 8 percent decline in iPod sales from the third quarter of the previous year, according to the Wall Street Journal, indicating and potential slowdown and implying that Apple might have to do something drastic to reinvigorate growth into one of its flagship products.

Apple analysts say they also expect Wednesday's event to emphasize the iPod Touch, which could include faster processors, high-definition retina displays, video recording and FaceTime video-conferencing technology.

Kaufman Bros. analyst Shaw Wu told The Wall Street Journal that it was very likely that the Cupertino-based company would offer two iPod Touch models -- one affordable basic device and another that contains almost identical features to the iPhone 4, minus the ability to call.

Meanwhile, Piper Jaffrey analyst Gene Munster told The Wall Street Journal that this year, he expected that the latest iPod touch will indeed include a digital camera.