ilounge believes that this images represents the changes to be implemented in the iPod nano 5G (5th generation) will be. The screen has a slightly different aspect ratio and is not tactile (makes sense, it is so small). The wheel is still present but is a little smaller than on the current nano. The article mentions the presence of a camera (not pictured here) located in a place where fingers would be blocking the view. On such a small device, that could be everywhere – except at the top, facing upwards.
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