TechCrunch reports that there are rumors Apple is planning to add a video camera to its iPod and iPod Touch devices.
Putting a camera in the iPod touch, which uses the same operating system as the iPhone, is a logical next step for Apple. But the order size is supposedly so large that some people in Taiwan are speculating that Apple may be planning to put cameras in the lower end of the iPod line, too. "Everything but the Shuffle may have a camera in it soon," says our source.
We don't have even close to enough information to speculate that the Nano and Classic iPods could be video-ready anytime soon. But I could easily see these lower end iPods include the camera just for taking pictures. Apple never turned video on in the iPhone 3G, but lots of people were using it via unlaunched apps from Qik, Ustream and others anyway. They could be planning the same thing for the Nano.
With video added iPods would become a threat to Flip's popular low-priced video cameras. Macrumors has a couple photos here of what an iPod might look like with a camera added. Engadget expects that an announcement of a new iPod touch and iPod nano with video recording capability would come in September - right ahead of the holiday shopping season. There is much more discussion of this rumor here on Techmeme.
Mockup photo of iPod Nano with Camera via DealExtreme
TechCrunch 
