Next Apple iPod to do eBooks?

Engadget claims that according to two separate "trustworthy" sources, Apple is working on incorporating electronic books into the next versions of the iPod.

We'd say the possibility is very real, since according to a source at a major publishing house, they were just ordered to archive all their manuscripts -- every single one -- and send them over to Apple's Cupertino HQ.

They also claim that the upcoming iPod will have "a substantial amount of screen real estate" alongwith a book-reading mode for easy reading. This rumor is consistent with long-standing rumors of a full screen video iPod that would launch alongside iTunes Movie sales.

Engadget believes that Apple would also launch electronic book sales via iTunes as well to provide content for this new iPod functionality. The reliability of Engadget's sources are unknown.