Apple, the technology compay, is expected to display its fancy new line of iPods on Sept. 1. The event is fueling speculation that the company may also announce plans to breathe life into its long-neglected TV project.

The consumer electronics maker, which has not held Apple TV as a priority, is expected by experts to showcase a new iPod Touch with dual cameras in time for the Christmas season.

The company's shares rose by 1.2 percent. In recent years, Apple has used big events in September to showcase new iPod models for the expected spending spree among consumers at the end of the year. Similar to recent years, the company is also expected to announce new features for its iTunes online media store.

Last year, event marked the return of Steve Jobs to the public eye after a long hiatus, during which he underwent a liver transplant. This year, blogs are afire with talk about a souped-up Apple TV, though analysts deem unlikely a major announcement on that front next week.

A report from Reuters says that Apple is negotiating with major U.S. TV networks such as Walt Disney, ABC and General Electric-owned NBC. The company is said to plan to offer TV shows for rent via iTunes for 99 cents per episode.

However, sources say that Apple has yet to close a deal with the networks. "From our checks with supply chain and industry sources, we believe potential changes could turn Apple TV into a bigger hobby and a multimillion unit seller," said Shaw Wu of Kaufman Bros.

The venue for the event will be the Yerba Buena Center for the Arts. Last April, Apple staged an event to introduce the iPad in the same venue.

IPods have long been the company's main product for the music- and media-player market. However, growth in the segment has slowed down over past years. Last quarter, Apple sold 9.41 million iPods. The figure sees a dip from the 10.2 million units sold at the same period last year.