Apple consistently reinvents iPod nano, rolling out new versions of its tiny player annually since 2005, with the exception of last year. It’s not too much of a stretch to assume we’ll see an updated version this year, out in time for Christmas, and according to Japanese blog Macotakara, it will be a return to the earlier, taller form factor, but with some notable differences.
The blog, which cites a "reliable Chinese source", reports that the new device will be three-quarters the height of the fifth-generation model, with a rectangular (presumably touchscreen) display, a home button like the one found on iPhone and iPad, and a "dedicated new iTunes service", suggesting it may have a working version of iOS onboard.
Macotakara also states that the clip that appears on the back of the current square design (for use during physical activity) will be abandoned, making the new 7th-gen nano much thinner.
While many tech blogs report rumors, Macotakara does have a good reputation for getting things right, having correctly predicted key features in both the iPad 2 and new iPad.