According to Think Secret's sources, a "true video iPod" with a 3.5-inch touch-sensitive screen and a virtual click wheel likely won't see release until next January's Macworld San Francisco, thanks to technical problems that have hindered its release. The lack of significant iPod updates this year has led some analysts to worry over sagging sales and ratchet back their expectations, which in turn has caused Apple's stock to drop recently.

Senior editor Ryan Katz ran down recent rumors swirling around the iPod, starting with the possibility of a talking interface. "While the necessary technology has existed for some time," he wrote, "Apple has yet to figure out how to implement it in a way that produces a desirable user experience, and the company believes the demand for such a feature would be marginal."

He also pointed out: "Sources add that Apple obtains patents for countless ideas that never come into fruition, so relying on patent filings as an indication of future products or features, as this report did, is unreliable at best."

Recent talk of Apple using OLED (organic light-emitting diode) displays in future iPod is also old news, Mr. Katz said. "sources say Apple briefly explored and ruled out the display technology some time ago due to the limited life-span of OLED displays and poor performance in direct sunlight. Apple has used, and will continue to use, only LCD displays in its iPods," he wrote.

However, with Microsoft supposedly incorporating Wi-Fi into Argo, it's so-called "iPod killer," there's been talk of Apple doing the same to keep up with its rival. Mr. Katz wrote: "There is no such race, however; rather, Microsoft's device will feature Wi-Fi and Apple's iPods will not. Wi-Fi functionality simply doesn't fit into Apple's media player plans, sources say, because in doing so battery life would be compromised, which runs counter to one of Apple's top priorities for its portable devices."

He added: "Further, the notion of connecting an iPod wirelessly to a computer makes little sense given the slow transfer speeds and Apple has no plans for the near future to roll-out a music store interface for its iPod that would enable users to purchase and download songs on the go."

Think Secret's sources also say that Apple has suspended work on its iPhone, which will apparently combine the iPod with a cell phone, but may continue development of it in 2007.

Thanks to MacDailyNews for the link.