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The latest rumor surrounding the iPod touch is calling for that device to soon be sporting a camera. This rumor is coming from a few points, with a few pieces of “evidence.” Of course, you can judge for yourself if you believe, or even want them to be true. Personally, I would say that an iPod touch with a camera, especially if it can handle video such as the iPhone 3GS would be a welcomed device.

Anyway, getting back to the evidence. We have recently seen some more cases pop-up online that show a hole for a camera lens on the back side. The cases are clearly labeled as being for the 3rd generation iPod touch and can be found on DealExtreme.

These of course, while appear to be real and available for sale, could be totally wrong in terms of ever properly fitting an iPod touch. My guess would have been just that, especially due to the fact that they are priced extremely cheap at $1.71.

However, on the flip side, we also have some evidence offering support coming from a recent TechCrunch report.

“One of our sources in Asia say that Apple has placed an order for a massive number of camera modules of the type that they include in the iPhone. These are inexpensive cameras, in the $10 range. And the size of the order, our source says, means they can only be used for one thing – the iPods.”

That said, this is still far from anything official, however it does appear to make sense. After all, Apple has seemingly taken over the phone market with the iPhone, now they could overtake another market with such a video capable iPod touch. I for one would rather purchase an iPod touch that could record video (as well as use the many other available apps) as opposed to another inexpensive handheld camcorder such as the Flip.

[TechCrunch and MacRumors]