As always there are lots of rumours flying around the internet about Apple products, and especially the iPod. The latest rumours coming from 9to5Mac is that Apple is working on an upgraded iPod Nano that will feature larger storage capacity and new colors and functionality.

We have earlier given our view of what the next generation iPod could be based on rumours and information available in the market. These latest rumours about the iPod Nano includes an upgrade in memory, bringing out an 8gb and 16gb version of the iPod Nano. There is not much information available of any other technical or functional upgrades, but there are rumours that the new iPod Nano will be available in a variety of different colors, and we don’t mean a single color, but rather the full rainbow effect, as illustrated here by the people at Stuff.tv

We remain on the fence on this until the rumours get confirmed, but we would not bet against an upgrade of the iPod Nano, or any other iPod as well, coming before Christmas season starts.

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