Pictured above is the second-generation iPod touch on the left and the third-generation iPod touch on the right. The round metal piece seen in the middle of the second-generation iPod touch board is actually an antenna cable socket which has been moved on the third-generation model, which only has a black plastic spacer in that place. According to iFixit, an iPod-nano style camera would fit in that location.
The finding is also consistent with a report from AppleInsider which claimed that the iPod touch with camera was a real product but had been scrapped about a month ago. The rumor site also believes that Apple is still planning on adding camera capabilities to the iPod touch in the near future.
[Via macrumors.com]
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