In line with a fresh report from KGI Securities analyst Ming-Chi Kuo claiming that Apple will be updating the iPod touch later this year with an "all-new" design using the same in-cell touch display technology rumored to be used in the next iPhone, Japanese blog Macotakara reports that Apple will also be moving the iPod touch to a 4-inch display from the current 3.5-inch display. The New iPod will launch with the Next-Gen iPhone aka iPhone 5 by October
According to an Asian source
'The New iPod touch (5th generation) will have 4 inch LCD which is the same size with coming iPhone 5.
CPU or other spec is considered to be same with iPhone 4S, and has different back-case design, which will be not mirror polished but buffed alminum one. And it seems to be prepared black and white color model."