The fourth-generation iPod nano will carry on the click wheel design but bear a passing resemblance to Microsoft's Zune to fit Apple's design goals, if a purported leak from iLounge is substantiated. Apple allegedly wants a screen larger than the two-inch LCD for the existing model but doesn't believe it could do so without compromising the size of the nano, which is already much wider than the first two generations of the player. The aspect ratio would be the same as for the iPod touch and would resemble a larger-screened version of second-generation flash-based Zunes, with a click wheel replacing the touchpad of Microsoft's device.
Coloring would also change, according to the sources behind the claim. Potentially addressing concerns about the fragile chrome back, the new iPods would allegedly revert to a wrap-around aluminum shell anodized in solid colors. The effect would more closely resemble a second-generation iPod nano but hasn't received full details.
Little else is known about the rumored design, which hasn't yet been verified by an outside source but would most likely be introduced through Apple's now-yearly music special event, which often takes place either late in August or else in September. A capacity boost is also widely assumed given drops in flash memory prices.
Source: electronista