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Swirling rumors that Apple has been working on an iPod Touch with built in camera and microphone may have been confirmed. Wired is reporting that “A well-connected source” has told them that factories in China have already begun churning out said device.

An iPod Touch with a camera and microphone suggest it will also be able to record video. The added hardware will bring the iPod Touch that much closer to the iPhone. The iPod Touch will be able to utilize many of the apps previously exclusive to the iPhone because of the camera and microphone.

I’m not sure the plan here, obscuring the line between the 2 devices, but this should make some cell carriers should pay close attention. The added microphone would give the iPod Touch the ability to use Skype services over WiFi. Moreover, a couple carriers, Sprint and Verizon, have recently released their 3G to WiFi hotspot devices which would allow iPod Touch users to bring a WiFi connection with them anywhere, with a much lower monthly cost than an iPhone plan.

I’m not sure how I feel about this yet. As an iPhone owner, as vain as it may be, I like the exclusivity factor that comes with it. If the differences between the iPhone and iPod Touch become much less seperated, the iPhone doesn’t seem that special any more.

Wired

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