According to online fanzine Apple Insider, the non-telephonic iPod Touch was supposed a receive a camera during Apple's recent product overhaul, but the planned upgrade was scrapped after the discovery of a production problem related to substandard contributory parts.

The new iPod touch 3rd Generation!
It's available in three different configurations, with both the 32 GB and 64 GB sporting a faster processor and OpenGL ES 2.0 support.

We don't think anything changed on the 8 GB touch. The only thing we know for sure has changed is the price (it's now $199).
According to Phil Schiller, "$199 is the magic price point in the iPod world." However, it sure seems people don't mind paying more. Apple's already sold 20 million iPod touches, all for more than $199 each.

What do you guys think of the new apple iPod Nano?

Prior to Apple’s “It’s Only Rock and Roll” event Apple’s online store went down and when it returned there were lower prices on all existing iPods, except for the shuffle.

* The iPod touch: 8GB, 16GB, and 32GB are now $189, $249, and $279 respectively.
* The iPod nano: 8GB and 16GB are now $129 and $149 respectively.
* The iPod classic is now $229.

This lends some credibility to reports from HardMac earlier this week saying that the iPod touch may be delayed.

Whether the new iPods are delayed or not, I’d wait to see what Apple announces at the event.

Apple slashes iPod prices up to $120 – Apple 2.0 – Fortune Brainstorm Tech.

We’re still hours away from Apple’s event today in San Francisco, but that apparently hasn’t stopped the company from releasing some changes in its own store. The main thing to note is the prices of the various iPod lines, especially the iPod touch.

Yesterday, a 32 GB iPod touch was $399. Today? $279. Yesterday, a 16 GB version was $299. Today? $249. The 8 GB one is now only $189, down from $229. The nanos are falling as well, with the 16 GB version now only $149, and the 8 GB only $129, down from $199 and $149, respectively. The iPod classic has seen a $20 price cut.

These price cuts were, of course, expected, and very likely point to a new 64 GB iPod touch being unveiled tomorrow in the $399 price point. Significantly, this means that the iPod touch is now cheaper than the high-end Zune HD, set to be released next week. The 32 GB Zune HD will be $289.99, roughly $10 more expensive than the 32 GB iPod touch, now.

The 16 GB iPod touch will still apparently be $30 more than the comparable Zune, but for once, Apple can claim a victory on the high-end price point.

We've just started receiving tips that Apple is quietly cutting the price of existing iPods ahead of its planned event later today. Thus far, we've seen the following price cuts. All prices given are in USD:

* iPod nano is now $129 for 8GB and $149 for 16GB.
* iPod classic is now $229.
* iPod touch is now $189 for 8GB, $249 for 16GB and $279 for 32GB.

There is no change to the price of the iPod shuffle.

These changes haven't completely gone through the site yet. As seen in the screen capture, some parts of the site still list the iPods at their old price.

We know you don't really need any more evidence that Apple is gearing up to unveil at least two new iPod revisions at its forthcoming 'rock and roll' event, but are you seriously going to hit the ignore button on these? If you'll recall, last year's visit to Hama's IFA booth gave us early access to cases of Apple's then-upcoming round of iPod nanos, and this year the company seems to be disclosing all of Cupertino's secrets once more. On hand were cases for Apple's fifth-generation iPod nano and the third-generation iPod touch, both of which seem to make room for a built-in camera. Of course, these lovely peripherals could be nothing more than a complete waste of company resources, but we'd encourage you to browse the gallery below before jumping to that conclusion.