AppleInsider.com reports that the long rumoured widescreen 6th generation iPod could be released as late as the third calendar quarter of 2007 but most likely early 2008. The article notes that the time-scale is much dependant on iPhone rollout.

Although Apple eventually intends to break widescreen video capabilities away from the iPhone for a device of similar proportions, sans the cellular capabilities, expectations of first-half 2007 launch are said to be overly ambitious.

Among the potential challenges believed to be facing Apple ahead of its sixth-generation iPod launch is a required margin of differentiation between the player and iPhone, both of which are expected to carry relatively similar price points upon availability.

The site also mentions the rapidly dropping prices of NAND flash memory which could allow Apple to deliver a 32GB flash-based iPod. A similar claim was made by analyst Jesse Tortora back in February who stated that Apple would be moving to an all flash-based iPod line-up.