It is strongly believed that Apple will unveil a new iPod Touch with a forward-facing camera for FaceTime during a September press conference. However, analyst Shaw Wu of Kaufman Bros. thinks a new iPod Nano design could be in the cards as well.

It is thought that this new iPod Nano would include many of the same hardware elements of the iPhone 4, such as a faster processor, retina display and FaceTime video conferencing. Interestingly, it could be that this iPod Nano will ship without the traditional click wheel.

Source: SFGate {link no longer active}