Will Apple release the next generation of iPod Touch, or will they replace it with the iWatch?

This question has been hovering over gadget analyzers' heads. Rumors have circulated that the popular iPod Touch line will be replaced with Apple's latest smart watch devices. Others believe the company will come up with the sixth generation of the iPod Touch devices before moving on to the next innovation.

The popularity of Apple's game-changing iPod line has been in a constant decline over the past few years. For several analysts, this trend illustrates what is in store for the iPod Touch.

With the emerging fame of smart watches in the market today, Apple is expected to jump onto the bandwagon some time this year or in the first quarters of 2015. Some believe the smart watches will replace the iPod Touch in the coming days.

Though iPod Touch sales have decreased by 36 percent in the last few years, the company earned a significant six percent gain in sales during the last quarter after Apple released its 16GB model which included a camera. This signifies a remaining demand for the product despite the emergence of more smart gadgets in the market such as iPhones and iPads.

Release rumors for two iWatch models have spread recently. This led to the belief that there will be no iPod Touch sixth generation release this year.

This encourages speculations that the smart watch could replace the touch-screen music player.

While these reports remain unconfirmed, several speculations about a possible side-by-side release of the iPhone 6 and iPod Touch 6 in September 2014 have risen on several gadget websites in the past few days.

Apple has yet to confirm or deny these reports.