According to sources from Appleinsider, Apple will update the iPod touch line this year, which makes sense because the company is launching new music service with beats audio integration.
”A source familiar with Apple’s future product plans indicated that Apple’s iPods — specifically the largest-screened model, the iPod touch — are expected to see an update later this year. The source suggested that Apple could retain the same 4-inch screen size as the current iPod touch model, though they didn’t offer any certainty on that front.”
Since the iPod touch hasn’t been updated in over two years there is a plethora of improvements Apple could make. It will be interesting to see if Apple makes it similar to the iPhone 6 but without cellular capabilities, or whether it will retain its compact size and focus on just music playback.