Code pointing to a new 5th-generation iPod touch was discovered in iOS 5.1, suggesting that Apple is preparing a significant update to the popular media player. The iPod touch hasn’t received a significant update since 2010, although new models (nearly identical to the previous generation) were released last September.
9to5Mac reports:
According to a file inside of an internal iOS 5.1 build, Apple is working on a fifth-generation iPod touch that is labeled iPod 5,1 internally. We haven’t heard any specifics regarding the new iPod touch hardware, but the jump from 4,1 (the current internal iPod touch label) to 5,1 indicates major internal changes, at the very least.
A new iPod touch model would likely feature a faster processor (perhaps an A5 or A5X chip, as used in the iPhone 4S or the new iPad), as well as an improved front and rear camera.
Although the iPod touch isn’t as popular as Apple’s other iOS devices, leading some to suggest that Apple should dump the device, it still serves a significant role as a gateway device to the iPhone, amd remains among the more popular portable gaming devices.