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Think Secret reports that it 'can confirm recent rumblings' that Apple (NASDAQ:AAPL) will rework the video iPod, removing its click wheel and replacing it with a touch screen and a 3.5-inch diagonal display (the current 5G iPod has a 2.5-inch screen) . The display will occupy the entire front face of the device. Think Secret reports that sources who have seen the device report that it features a digital click wheel, one that overlays the touch-sensitive display and appears when a finger touches it and disappears when the finger is removed; sources indicate that AAPL could hold an exclusive license on the technologies, thus limiting the ability of others to copy the design.

StreetAccount notes that Cypress (NASDAQ:CY) and Synaptics (NASDAQ:SYNA) have supplied AAPL with click wheels for past iPods, but that it is unclear if either would be involved in the new iPod reported by Think Secret.

(Image: Engadget)

Source: Revamped Video iPod With Touch Screen On The Way? (AAPL, CY, SYNA)