Rumor: New generation iPod nano will have a larger screen

Word on the street says Apple is contemplating releasing the 4th generation iPod nano in a slightly wider size than its first three generations. The increase in size is necessary for the new iPod Nano to have a larger screen than its current 2-inch LCD. The new 4G nano would also have an aspect ratio similar to the iPod Touch.

Now, here’s the interesting part. Given the design of the current nano, the redesign would make it a larger-screened version of the second generation Zune media player. The basic difference would be the 4G nano’s click wheel navigation instead of the Zune’s touchpad.

Further speculation after the break.