ThinkSecret is reporting that Apple will be able to produce the much anticipated “true video iPod” by October in preperation for the Holiday Season.

ThinkSecret believes that the recent update and price drops of the iPod line, leaves room for an addition to the popular MP3 player line. They believe an early release can be expected, despite technological hurdles.

Instead of usurping the just-updated 5G iPod, this new iPod, boasting a 3.5-inch widescreen display, would be pedaled as its own product line.

Apple’s $50 price cut of the 5G iPod, to $249 and $349, certainly leaves room in the line-up for a new top-end iPod, while the substantial improvements in iPod battery life delivered by Tuesday’s update means Apple has undoubtedly figured out how to power the larger display and dynamic interface without compromising portability.