Looks like Wired’s “well-connected source” is telling them some industry threatening secrets. According to them, Apple’s Chinese Contractors are already popping out iPod Touch units with included cameras and microphones, which isn’t really surprising. The iPod Touch has needed a camera for quite some time, and the fully supported VoIP option is extremely plausible as well.

Could this steal some market-share from AT&T, especially with users living fully within a Wi-Fi cloud (major cities)? The iPod Touch now is truly the iPhone, without the phone. [Via]