iPhone 4G to Get Touch Sensitive Case

Even as Apple tablet rumors continue to race across the Internet at a fevered pitch, new iPhone rumors are picking up steam, and the latest claims Apple's next combination iPod and smartphone will include a touch-sensitive case, according to Bloomberg.

News of a Magic Mouse-like touch-sensitive case for the fourth generation iPhone came through an anonymous source speaking to analyst Robert Chen of Goldman Sachs. Apple's Magic Mouse includes a multi-touch surface that supports taps and gestures for navigation and selection instead of traditional buttons.

Should Apple actually include touch support in the case, the entire outer surface of the next generation iPhone could essentially be a navigation system.

Mr. Chen added that the new iPhone would also include a 5-megapixel camera, and would ship in June or July, which is in line with the delivery windows for previous iPhone models.

He also expects Apple will include a major OS upgrade with the new iPhone. "Apple's going to put a lot of innovation, not just on the hardware, but also on the software of the new iPhone," Mr. Chen said.

Apple isn't offering any confirmation for Mr. Chen's report, so for now his comments will have to remain in the rumor camp.