Later this year Apple will unveil its 5th generation iPod which will feature more homegrown Apple-branded components. Apple's current iPods use hard drives from Toshiba, controller chips from PortalPlayer, navigational controls designed by Synaptics and LCD displays from either Sharp or Samsung. But in future Apple hopes to develop more own component solutions, rather than continue to license them from others. This will give them more control over the iPod and reduce their costs at the same time.
One of the first homegrown components will be a new scroll-wheel for the iPod.
Another interesting rumour is that Apple's fifth-generation iPods will see major improvements in battery technology. Apple is said to develop iPods with user-replaceable batteries which will be available for a price between $49 to $69. These new batteries will likely also improve battery life.
More details at AppleInsider