iPod Touch to Be Merged With iPhone 5 Product Line?

We have just received information that the iPod Touch is being phased out. The tip comes from what we believe to be someone in a position to know. Indeed the evidence we have seen so far already seems to suggest this maybe correct:

1. No iPod Touch in the back to school promo.
2. Unlocked iPhones now out in the US.
3. iOS 5 Betas are not showing any signs of iPod Touch hardware
4. iSupply suggests that the iPhone 4 costs $188 to build.

So what would this mean? Well it would mean cheaper iPhones for all, and every purchase of this new device would place a potential Apple phone in everyones hands. Apple’s dominance of the smartphone market would expand drastically. This would no doubt allow people to be free of phone contracts increasing the ‘buy in’ by the consumers, allowing them to update yearly at a lower price point and free of contract tie in’s. It would also aim to simplify the Apple product line which is something Apple always aims to achieve.

We hope our source is right, this would rock!