The addition of a camera for the nano would be in line with the reports on the new iPhone's point-and-shoot camera, and could indicate that the remaining devices in Apple's range such as the iPod Touch could receive one as well later this year.
is also reporting that the screen size of the new iPod nano could be increased to an aspect ration of 1.5:1 an increase from 1.33:1 in the current model. The click wheel is also expected to shrink, and move further down the device.
And as for the iPhone, iLounge claims that the new iPhone will come in six different configurations to suit the different telecommunication networks around the world.
China could also benefit - with the report citing that a special model could be released just for the Chinese, possibly without the ability for a 3G connection.
The report claims that the new model could be released sometime between July and September - around the same time that the new iPod Touch is due.