These rumors were confirmed by Bloomberg.
The first rumors about an improved version of the portable console appeared in the Taiwanese edition of the Economic Daily News. According to the information received, an improved version of Switch should be released in early 2021. According to rumors, improvements should touch the screen and interactivity.
Bloomberg confirmed the information, but made some adjustments. In 2021, Nintendo is actually going to release an improved Nintendo Switch, but only the production of the console will begin at the beginning of the year. Thus, its release will probably take place no earlier than the middle of next year.
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Sources of the publication say that Nintendo is looking for ways to improve the performance of the console to bring up the resolution to 4K. Surely this improvement concerns the docking station.
In addition, the lack of major releases for the console is likely due to the fact that these games are planned to be released in time for the improved Switch. Most likely, The Legend of Zelda: Breath of the Wild 2 will appear along with this console.