How else would the iPod touch benefit completely from iCloud Music?
Last week a rumor appeared on a Dutch blog that said that Apple plans to offer a new iPod touch with 3G connectivity. An iPod touch 3G is actually not surprising at all. Apple is launching iTunes in the cloud. Apple's premier music player needs to be able to use it on the go. A data only 3G connectivity option like you find on the iPad is a logical offering. The question is though how many customers will go for the extra data service cost. The difference between the iPhone and the iPod touch will get pretty small.
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The rumors of a pre-paid iPhone 5 fit into the iPod touch 3G discussions. A sub-$300 contract free iPhone 5 would make a iPod touch 3G not really interesting.
Apple sure has this already figured out how the iPhone and iPod touch models will evolve and not cannibalize each other. IT is not an easy problem to solve. Besides in the iPhone and iPod category there is also talk about a new iPad HD that needs to find its place in the iPad line-up this year or next year.