In line with a fresh report from KGI Securities analyst Ming-Chi Kuo claiming that Apple will be updating the iPod touch later this year with an "all-new" design using the same in-cell touch display technology rumored to be used in the next iPhone, Japanese blog Macotakara reports that Apple will also be moving the iPod touch to a 4-inch display from the current 3.5-inch display. The New iPod will launch with the Next-Gen iPhone aka iPhone 5 by October.
According to an Asian source:
"The New iPod touch (5th generation) will have 4 inch LCD which is the same size with coming iPhone 5.
CPU or other spec is considered to be same with iPhone 4S, and has different back-case design, which will be not mirror polished but buffed alminum one. And it seems to be prepared black and white color model."
Apple doesn't provide technical specs of its products when it comes to RAM and other hardware internals. iFixit has torn down the 5th generation iPod touch, and confirmed that the device contains 512 MB of RAM, the same as the iPhone 4/4S, but more than the 256MB of RAM found in the previous generation iPod touch.
Also the New iPod touch 5 pack inside of it an Apple's A5 processor and 32 GB of NAND flash from Toshiba. The battery notably has jumped to 1030 mAh, more than the fourth-generation iPod touch's 930 mAh cell. The device's display is claimed to be "a much simpler, cheaper design" than the iPhone 5 display.