Rumor Report: Bugs in Apple's new iPod?

The following is a rumor report from our sister site, TheStreet:

Apple (Stock Quote: AAPL) may be ready for its close-up, but a possible camera glitch could blemish the new iPod picture.

Apple's iPod event Wednesday is expected to focus on music and it is widely expected to be a showcase for a revamped line of iPods with cameras.

The potential troubles with camera modules were reported Monday on the Appleinsider blog. "Technical difficulties" threaten to delay the new iPod, according to the report that cites a source with "a strong track record in predicting Apple's upcoming product launches."

Separately, Hardmac, a French Apple blog reported Monday that a camera glitch has affected some production of the iPod Touch.

While big for music fans and particularly huge for Beatles lovers, the iPod event isn't expected to be all that significant for investors who are more focused on Apple's iPhone and Mac products. But if the glitch reports are true, it could cause delays of some of the new iPods during the upcoming holiday season.

Chipmaker OmniVision (Stock Quote: OVTI) is a key supplier of image sensors to Apple.

Apple declined to comment and OmniVision representatives were not immediately available Tuesday.

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