New iPod touch mockup

Apple’s iPod touch has gone without a major refresh for almost two years now, but the next one could be something special. According to KGI Securities analyst Ming-Chi Kuo, the Cupertino company’s most popular iPod will get a new 4-inch display, a dual-core A5 processor, and an “all-new” design with a “buffed aluminum” rear shell later this year.

The new display makes a lot of sense, especially if the new iPhone gets a 4-inch display later this year, which is widely believed to be the case. And according to Kuo, just like the iPhone, the iPod touch will feature in-cell touch technology, which makes the display significantly thinner than existing iPod touch displays.

This slim display will allow Apple to introduce a brand new design that will feature a buffed aluminum rear casing — as opposed to the mirrored stainless steel casing on the current iPod touch, according to Kuo’s sources. They also report that the device will get a dual-core A5 processor — the same chip features in the iPad 2 and the iPhone 4S.

Finally, Kuo’s sources say that the new iPod touch will have an additional hole towards the bottom end of its rear casing, like the one seen in the mockup above. It’s unclear at this point, however, what this hole might be for.

[via MacRumors]