Retailer John Lewis invited a bunch of journalists at the company's Christmas event where potential products are presented ahead of the sales season towards the end of the year.
Pocketlint (opens in new tab) and Electricpig (opens in new tab) report that the Apple iPod Touch circa 2010, which was one of the highlights of the show, is likely to be sold as a multimedia device for youth and kids (if they can afford it), come with a massive 5-megapixel camera that can shoot HD video and upload to youtube, native social networking capabilities, a built in accelerometer and gyroscope and Facetime capability.
So in a nutshell, it's the iPhone 4 without the phone, the front facing camera and without the Retina display. It will be interesting to see whether Apple will adopt the radical change in form factor in order to save costs.
The addition of the motion sensors is a big deal since it would give Apple the necessary platform to encourage game developers to launch titles that can offer the same gaming experience as Xbox 360 with Kinect, the PS3 with Move and the Nintendo Wii.
Also a HD ready video recorder, all but kills standalone HD cameras like the popular Flip or the Creative Labs Vado, especially as it combines many more features.