The iPod touch will see a new larger screen in its next version upgrade if these new rumors are to be believed. The new iPod will feature a seven to nine inch touch screen and will obviously do all that the current iPod touch can do. As for the new sizes, it definitely is intended for book lovers or true movie enthusiasts. Apple has been experimenting internally with large form tablet devices for years, one source says, but there was concern that users wouldn't like the device. The difference now is the iTunes app store, which has thousands of games and other applications that are perfect for a touch screen device with an accelerometer

The new device is said to be compatible with the applications in the App Store and is expected to be released in the fall of 2009. The current iPod touch, with a 3.5-inch screen, starts at $229. The 32 GB model is $399. We expect the price on the larger iPod touch to be significantly higher.

Via