The iPod Touch, like the iPhone internet and multimedia enabled smartphone and the iPad tablet computer, runs the iOS (Apple changed the name from iPhone OS to iOS because the iPhone was no longer the only product using it) operating system based on the Machintosh Mac OS X. The iPod Touch is able to run a large number of applications, as long as they are firstly approved by Apple itself and obtained through their online AppStore. Running applications on your iPod Touch which do not meet these requirements can cause serious software problems that breaks the warranty.

The second generation iPod Touch came with some new features such as the ability to connect a microphone, a built-in speaker, built-in Nike +, or Bluetooth support. This generation was unveiled on September 9, 2008 at the "Let's Rock" keynote presentation. Apple announced and released the third generation device on September 9, 2009. This new installment brought some improvements and features to the iPod Touch line, like voice control, a light sensor, or the bundled earphones with a remote and microphone. The battery life however, was not improved, but dropped to lower capacity. In terms of internal hardware and speed, the third generation of iPod Touch is much more faster than any previous iPod because it uses the same hardware configuration as the iPhone 3GS (the same microprocessors, same graphics engine and the same RAM). The iPod Touch 3G is available in 32 GB or 64 GB internal storage versions.

The second generation pf iPod Touch continued to be sold through the 8 GB version. The second and third generation of iPod Touch are able to upgrade their iOS to 4.x, but cannot use the respective iOS's features that involve the iPhone's camera or GPS receiver. On September 1, 2010, Apple launched the fourth generation. This model comes with the new Retina display which is a display developed by Apple, able to show very high resolutions. It also features things like a microphone for communication, two cameras (one for FaceTime, which lets people perform video calls, and one for HD video recording and photos). The fourth generation is powered by the A4 processor developed by Apple which is also used on the iPhone 4.