Various market sources are reporting that Apple is expected to hold an event for the media next month.

The expected date is September 7.

This event is likely to be the one where Apple would launch their next generation iPod Touch.

Apple needs to update their portable media player for two major reasons. After the launch of the iPhone 3GS, iPod Touch seems very expensive. The company needs to update the prices or the specifications.

Microsoft Zune HD is coming next month and it features several impressive features. High Definition video support in addition to OLED touchscreen display.

We have already heard tons of rumours that the iPod Touch would get the digital camera from the iPhone. This could boost the functionality of the device several times as it could become a potential replacement of digital cameras.