Pixelique

Think Secret can confirm recent rumblings that Apple is nearing completion of a completely revamped video iPod that will shed the ubiquitous mechanical click wheel for a touch screen and will sport a 3.5-inch diagonal display.

This video iPod, which has been in development and on the table since before Apple released the 5G iPod last year with video playback, will feature a display that will occupy the entire front face of the device. 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.

Apple has been working with at least two other companies to perfect the digital click wheel display technology. While not all the engineering was completed in-house by Apple, sources have said Apple could hold an exclusive license on the technologies it borrowed from other developers for a period of time, limiting the ability of competitors to copy Apple's design.

Additional details concerning the new iPod have yet to be confirmed, including capacity and a release date, although all indications point to the Spring, possibly as early as late March or early April. During the Macworld Expo in San Francisco, Apple CEO Steve Jobs alluded to a major announcement on or around April 1, Apple's 30th anniversary as a company.