The story comes from The China Times, where it reports that Apple is trying to launch the device in time for the Christmas shopping season. It also says that Wintek will be providing the touch panels, whilst Foxconn will be manufacturing the tablet. Both of these names have been mentioned before in these rumours, adding to the likelihood of their involvement.

Instead of following the “current market trend (by producing netbooks with screens about 10.2 or 10.1 inches in diagonal length)” the report instead suggests Apple “will produce screens with about 9.7 inches in diagonal length.

The report goes on to say that is targeting a different market to that of netbook leaders, Asustek and Acer, hence the price premium. “Because Apple will adopt touch screen technology on its netbooks, Apple will not target low-end consumers,” said the (translated) report. Any new device near the $800 price range would nonetheless be significant for Apple, which has never had a new, retail price computer below the $999 mark.

Via Macrumors [via Gizmodo].

There ‘s not much more to the report than that. The original story suggested that shipments of these touch panels were expected in Q3 2009. If this rumour is true, it would put paid to rumours that Apple was working on an OLED tablet with the screen supplied by LG. Although, according to analysts, the rumoured netbook, tablet or Media Pad will not arrive until the first half of 2010.

“We are anticipating a new category of Apple products, with an operating system more robust than the iPhone’s but optimized for multi-touch. We expect the end result to be launched later but with more dramatic differentiation than the Street is expecting,” Munster said.

He makes a good case on why it will be a touchscreen tablet. For one Apple has consistently said that refuses to launch a “cheap” portable netbook. The company has also gradually added multi-touch technology to all of its core products (iPhones, iPods and Macs). He expects that it will be driven by a proprietary microprocessor designed in-house by engineers Apple adopted in the acquisition of P.A. Semi and others it’s known to have hired in recent months.

The delay into 2010 is largely due to the operating system. “Its complexity, along with our conversations with a key company in the mobile space, leads us to believe [the new device] will not launch until calendar year 2010,” he said.

Munster’s contacts in the component supply chain have not seen a prototype of the device but say there are ongoing discussions between the company and its suppliers about the parts that will eventually be required to build the product. Now whether he has the inside track at Apple or is just speculating we don’t know. He doesn’t talk about whether it will come with a virtual or real keyboard.

“Another important possibility for the tablet that we expect Apple to launch in 2010 is that of wireless carrier subsidies.” Apple has become all too familiar and rather comfortable with subsidy pricing on its iPhone 3G, and Munster believes the company may take a similar approach to sales of the tablet.

Here’s a look at Munster’s argument as to why Apple won’t launch a netbook and why a tablet is the front-runner:

Apple’s COO Tim Cook recently described the netbook in its current form as “junky”, the same sources for the report maintain that Apple has no plans to cater for the netbook market as it exists today.

This would be seen as interim solution until Apple is ready to introduce its own take of what a netbook should be. This is a project that is taking longer to complete than anticipated says the report. So it looks like we may be waiting a bit longer for that rumoured 10-inch Apple tablet.

A report from BusinessWeek suggests that this Apple media pad will be used to listen to music, view photos and watch HD content. It could also be used to make phone calls over a wireless connection. It is unknown what type of form this media pad would take, but could this be the Apple tablet that has been rumoured for so long?

For those that have seen it, the media pad is meant to be smaller than Amazon’s kindle e-reader. The Kindle has dimensions of 7.5″ x 5.3″ x 0.7″ whilst it has a six-inch display. The media pad is believed to be smaller than the kindle, although the screen is bigger according to the same sources.

“The media pad category might go to Verizon,” said the person who has seen the device. “We are talking about a device where people will say, ‘Damn, why didn’t we do this?’ Apple is probably going to define the damn category.”

Apparently, this rumoured “media pad” along with an “iPhone Lite” is the result of a collaboration between Apple and Verizon Wireless. One of these devices could appear as early as this year according to the report, although it doesn’t suggest which this may be. Given that AT&T has exclusivity on the iPhone in the US, I find this news surprising.

Apple’s deal with AT&T may only involve the original and 3G iPhones, and not these new devices. Of course, launching different devices with different carriers would make the situation complex for customers. It may highlight a move by Apple to not rely on one sole provider to distribute its products.

“For us, it’s about doing great products. And when I look at what is being sold in the netbook space today, I see cramped keyboards, terrible software, junky hardware, very small screens, and just not a consumer experience, and not something that we would put the Mac brand on quite frankly. And so, it’s not a space as it exists today that we are interested in, nor do we believe that customers in the long term would be interested in. It’s a segment we would choose not to play in,” said Apple’s Chief Operating Officer, Tim Cook.

Somewhat perversely, Apple claimed that instead of using netbooks, consumers only really need an iPhone or iPod Touch. “People that want a small computer so to speak that does browsing and e-mail, might want to buy an iPod Touch or they might want to buy an iPhone. And so, we have other products to accomplish some of what people are buying netbooks for,” said Cook.

The big tease was left till the end though, when it appeared that Apple are planning something. It’s probably just something very much unlike what one sees as a netbook as today. Cook said, “if we find a way where we can deliver an innovative product that really makes a contribution, then we will do that and we have some interesting ideas in the space.”

Given that Apple reported record profits of $1.21 billion on revenues of $8.16 billion, it doesn’t seem like Apple needs to hurry in releasing a netbook-like device. The company continues to do well making healthy margins on its premium products.

My view is that given how negative he talks of netbooks shows that Apple is planning something. Apple has a history of trash talking product spaces and denying interest right up until they launch their own offering. It is more evidence that if there is such a thing as an Apple netbook or tablet, it won’t look like a standard-issue netbook. It will be the logical development of the iPhone platform.

We have already heard a number of rumours regarding an Apple netbook or tablet device. This includes the news that Apple has apparently placed an order with Wintek to supply 10-inch touch panels, with shipments of the panel expected in Q3 2009. There have also been rumours that the device will use flash storage and even rumours that it will have an OLED screen.

MacRumors suggests: “Apple’s ongoing research into multi-touch, however, has generated speculation that Apple may incorporate more advanced gesturing into a future device.” This may point to a tablet device without physical keyboard. Steve Jobs, who has been absent from the public arena due to health troubles, is expected to take up a full time roll again from June. Could this coincide with the release of Apple’s rumoured portable device?