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Apple released new iPods year on year pretty much just for storage space upgrades for a while.

What could it have that couldn't be done in software? How about:

More storage (always more storage), more RAM, maybe a faster CPU if they could do it without ruining existing software by running it too fast, the new more precise more responsive multi touch screen design that was demo'd on recently, a front facing camera, new radio support (e.g. 4G), reduced power consuming components (3G/bluetooth/gps processors), improved internal speaker for music/handsfree use, new WiFi standard support, more CPU features, camera flash.

What about manufacturing changes? If they apply what they've done to the Macbook range to the iPhone, could they get a casing with fewer seams? Better looking? Cheaper to make? With more room for components inside?

And these are just basic predictable potential improvements without going as far as a projector or an nVidia 3D card or a physical keyboard or some new never seen before innovative change.



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