By Benedict Wee
TechCrunch's sources in Asia have reported that Apple has ordered a significantly large amount of cameras, the same ones that they use in the iPhone which will go into future ipods. This rumor is based on the size of the order which fits the number of ipods manufactured in its annual cycle.
To strengthen the rumor, MacRumors.com has pictures of massively produced (and cheap-looking) ipod cases with a hole in the back, an obvious feature for a camera lens.
Update: More cases have resurfaced though the camera hole is in a different position. It's still not determined where the lens would be should the rumor be true but it's not stopping those manufacturers in China from making them and poking random holes.
Inserting a camera is a logical step for Apple since the iPod Touches already possess most of the functionality of the iPhone. By having this added feature, Apple could pose a credible threat to the digital camera and portable camcorder industry which caters mostly to the regular "not a photographer" public.
Now all they need to do is insert a GPS and a compass and we'll have a much cheaper alternative to the iPhone 3GS.
TechCrunch - Prepare yourself for iPod Video