The iPod touch is nice and all, but it can't compete with a 1 Ghz Hummingbird processor and a 4" Super AMOLED display. CNET reports that Samsung is hard at work creating a PMP version of their popular Galaxy S series of smartphones. The YP-MB2 is currently on sale in Korea, and is likely to come to the US in the near future.
Apple will probably unveil their new iPod touch around September, so that would be a good time to look for Samsung's announcement. Like the Galaxy S, this device will pack a 1 GHz processor, WiFi, FM radio, DMB-TV, GPS, a 4" Super AMOLED display and 32 GB of storage. It supports MP3, Ogg, FLAC, AAC, WMA, WMV, ASF, AVI, MPEG4, DivX and Xvid. Android 2.1 will be the launch OS.