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Analyst: iPod touch to gain 5-Megapixel Camera, GPS, Gaming capabilities and more

Following a string of reports on the new iPods expected later today, KGI securities’ Ming-Chi Kuo issued (via MacRumors) a list of “expectations” for today’s iPod touch upgrade.

Most of it is a rehash of details that others and we reported earlier. He mentioned the same iPod touch colors that we reported last week, we also first reported a 1,136-by-640 display in May, and the processor was revealed by @Chronic yesterday, but there is some new thinking which we hadn’t yet reported:

– GPS: While the current iPod touch can in some cases determine fairly accurate location information based off of Wi-Fi access points, Kuo expects that the new iPod touch will incorporate built-in GPS in order to better capitalize on Apple’s new Maps app.

– Camera improvements: Kuo expects the iPod touch to adopt a FaceTime HD camera on the front, as well as a significantly upgraded 5-megapixel rear camera.

– Cross-device compatibility: The new iPod touch may be able to easily connect with iPad and Mac hardware to serve as a game controller or other accessory.

Kuo also believes that Apple will discontinue the fourth-generation iPod touch. We heard that is wrong and the current iPod touch will continue in a new 16 GB form. Given that—we cannot be too sure about the exact nature of the camera improvements he listed above (and view them as estimates). While we do expect improvements, possibly including a panorama mode, we cannot verify the 5-megapixel figure. We earlier predicted the same FaceTimeHD that Apple released on the iPad 3.

GPS would be a factor of the Broadcom Wi-Fi chip that is used. Typically, Apple’s iOS device GPS resides on the 3G/4G Broadcom baseband processor that is missing from iPods and Wi-Fi-only iPads. The current thinking is that GPS is not very useful without a data plan, but perhaps Apple is considering caching local maps data to the new Maps.app. Current iPod touch devices can triangulate their position based on Wi-Fi hotspots and through hotspotting on a GPS-equipped iPhone.

As for the Game controller angle, we are not sure it is an angle Apple will take. We have heard about some Bluetooth 4.0 opportunities, though.

Kuo also has been setting moving targets for iMacs and other Apple products, which have varied from August to November.

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