Aug 11, 2010 09:06 GMT  ·  By

A source with a very strong track record of predicting Apple’s hardware upgrades points our attention to the upcoming availability of the fourth-generation iPod touch, featuring not only FaceTime support, but also the Retina Display found in Apple’s iPhone 4.

Recognized by journalists and tech-bloggers as the source for Apple-related rumors, pundit John Gruber has issued a note in response to Dell's announcement of the Streak mini-tablet, noting that Apple’s upcoming iPod touch will be a far better choice.

The blogger notes that Dell’s Streak will ship with a 5-inch screen, priced at $300 with a two-year AT&T contract, or $550 contract-free, this Friday. “That's almost twice as much as a good iPod Touch, and if you wait a few weeks to buy the Touch, you'll get one with a Retina Display and dual cameras,” he writes.

Soon after introducing the iPhone 4, Apple said that its engineers were able to pack four times the number of pixels into the same 3.5-inch (diagonal) screen found on earlier iPhone models, by developing pixels a mere 78 micrometers wide. At 326 pixels per inch, the resulting pixel density makes text and graphics look smooth and continuous at any size, Apple claims.

Several alleged hardware leaks have pointed out to a next-generation iPod touch bearing not only the missing back camera for taking pictures and shooting video, but also a front-facing camera to support FaceTime, Apple’s new standard for video-chatting.

Evidence of Apple’s plans to introduce FaceTime support in its next-gen iTouch comes from people familiar with iOS 4.1 beta builds.

The latest seed, Beta 3, adds an option to place FaceTime calls based on the recipient’s email address, in what is undoubtedly a move to allow FaceTime calls between the iPhone and the iPod touch.

The touch, although almost identical to the iPhone from most standpoints, lacks phone functionality.

Historically, Apple has held iPod-focused events in the September timeframe, although this year, the Cupertino-based electronics maker is expected to drop invitations earlier - as soon as this week.

The rumored event is said to have a typical focus on entertainment, with Apple expected to announce the aforementioned iPod touch, as well as a new iPod nano, and a 7-inch iPad.

Also caught up in the rumor mill are an iOS-based Apple TV and iTunes in the cloud.