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.
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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.