Recent rumors have been running on the web that Apple is going to launch their 4th generation iPod touch this september. Good news is that it will have 2 cameras for Facetime and have the awesome Retina display that the iPhone 4 has. If existing pricing is anything to go by, expect the new iPod to launch at something between $299 to $399 . If it is going to be $299, people will flock to buy it, I know I will.

In expectation of this, some retail stores have dropped the prices of current iPods to make room for new ones.

iPod 4g

I have been following recent developments in both camps at Apple and Android. Both launched great new phones in the past few months. Unfortunately if you are like me, you don’t want to spend $700+ on a smart phone. So the solution I have devised it to look at the next best alternative, the iPod touch.

Apple launches a new iPod line every september. They have been consistent in this regard. If you have seen the iPod touch 8GB (which is really a second gen iPod touch) you’ll see that it does everything an iPhone 3G does except for calls, camera and GPS. But for someone like me who already has a pretty good Nokia, I need the gadget for the extra stuff, like email, browsing, facebook and most importantly games.

So the deal right now is that the iPod Touch 8GB is for $199. Considering the facts, the iPod 8GB will be discontinued (in the same lines as the iPhone 3G was discontinued on the launch of iPhone 4), and the iPod 32GB will be dropped to $199. The iPod 4 should start at $299. If thats the case, budget buyers should be able to get the old iPod 8GB for very low prices on stores and someone who can afford it, should go for the new Retina-awesome iPod 4!

P.S. Have you seen the new Rage3d demo on the iPhone 4 by John Carmack? Check it out