The dark satanic rumour mill has manufactured a yarn which claims that Apple's iPod Touch device is about to morph into a iPhone-a-like handset.

The souped up iPod will also get a camera to its current feature suite and obviously a microphone. The source of the rumours has been Wired, which has quoted one of its better deep throats in Apple. Since most people who are suspected of being deep throats in Apple tend to end up mysteriously throwing themselves off Chinese apartment blocks we would have thought that it would be a tricky job to have.

What might happen is that combining the new mic with a Skype VOIP phone account will "obviate the need for a home phone line once and for all". Although we find it hard to think that Apple would be liberal enough to allow Skype software as its main software source.

Apple traditionally announces a new music-based product in September so we will know then.