Apple has not refreshed the iPod touch since October 2012, when the portable media player was updated with an ultra-thin and colorful design, A5 processor and Lightning connector. iPod sales have been declining for several years, becoming a largely insignificant part of Apple's product lineup, anchored by the iPhone, iPad and Mac. The company no longer discloses iPod sales in its quarterly results after reporting 2.9 million units sold in Q4 2014.
The report is entirely speculative about possible new features the next-generation iPod touch could have, including a 64-bit A7 processor, increased storage space, and improved iSight and FaceTime cameras. Additionally, it would make sense for the new iPod touch to support Apple Pay, which would require locked down NFC capabilities and a Touch ID fingerprint scanner. Beats-related features could also be in store following Apple's $3 billion acquisition of the company in May 2014.
If the report proves accurate, Apple could announce its next-generation iPod touch during its iPhone event in September or iPad event in October that it typically holds each year. It is also possible that Apple may quietly update the iPod touch through a press release or website update, given that iPods are no longer as significant for Apple.