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New York – According to the latest Apple rumors, Apple is preparing to release a new iPod Nano and a new and improved iTunes.

Digg founder Kevin Rose posted a “leaked” image of the new iPod on his blog.

According to Rose’s blog, the new iPod Nano is going to feature a widescreen, with many new features.

Rose also predicts that Apple is ready to launch iTunes 8.0.

Rose predicts:

- Revamp of entire iPod line.
- Small cosmetic changes to Touch, Nano to see significant redesign.
- iPods to see fairly large price drops to distance itself from the $199 iPhone.
- iPod touch 2.1 software, iPhone to get update very soon after.
- iTunes 8.0 (”it’s a big update w/new features”).
- All of this coming in the next 2-3 weeks.”

Of course the information posted by Rose is only speculation and we’ll have to wait and see if any these features materialize.