Sources in Taiwan have claimed that the next generation of iPod may be equipped with digital cameras after having noticed a massive surge in the number of $10 camera subsystems purchased by the Cupertino-based company.
Michael Arrington from Techcrunch reckons that the size of the order is significantly more than what one can expect for the iPhone 3GS alone and one of his sources said that all new iPod devices would come with a camera except the Shuffle.
The camera module present on the iPhone 3GS apparently cost $9.55 according to iSuppli which tore the phone down last month and is a 3-megapixel Auto-focus model without flash.
Rumours about a camera on the next generation iPod emerged back in may 2009 when Jeremy Horwitz, Editor-in-Chief at iLounge, managed to get hold of details about such a beast and produced a mock up.
Furthremoer, casings for the next generation iPod Nano and Touch have also emerged and curiously, parts sourced from popular online Chinese/Taiwanese based etailers show that they have holes that appear to correspond where a camera lens would be.
Apple could effectively crush the budding/nascent market of digital video cameras under £80 by releasing a range of video-enabled iPods. It would manage overnight to squeeze the likes of Flip, Kodak and Creative single handedly.
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Companies with a single line of product like Creative or Flip are at a risk of getting crushed to death by Apple. Just like Microsoft did for the likes of Netscape and Corel/Lotus business suite, Apple's Midas Touch means that it could not only greatly expand this market but also make rivals (almost) completely redundant.
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