Reports published today have suggested that a multimedia, video-playing iPod could be available as early as 2006.

Financial analysts at UBS Investment Research made the announcement before adding that boffins at Apple are studying the popularity of the video playing features in Sony’s PlayStation Portable (PSP) before deciding on a similar device for the iPod.

“We would not be surprised if Apple eventually launched some form of multimedia iPod," Ben Reitzes and Jeff Brickman from UBS noted.

Apple chief executive Steve Jobs has previously denied such speculation but Apple is well known for its denial and secrecy policy surrounding forthcoming products.

Reports suggest such a multimedia iPod would cost in the region of £265 and would likely be followed by the introduction of an iTunes for movies and video.

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