Blogger Michael Arrington of TechCrunch who claims that iPod Touch prototypes have been “seen and handled” by his sources, that also claim Apple is in talks with manufacturers.  

“We’ve got this from three independent sources close to Apple: expect a large screen iPod touch device to be released in the Fall of ‘09, with a 7 or 9 inch screen”.

Apple is rumored to be looking at sources higher performance CPUs for its gear in the future and with its new relationshipwith NVIDIA, the Ion platform with an Intel Atom CPU and a 9400M GPU would be fantastic in a thin tablet style device. Sure, it would be thicker than the iPod touch, but honestly, I think a table device can only go so thin before it feels odd in the hands.

Arrington says: “I’m not saying Apple is definitely launching a large form iPod Touch. But sources I trust are saying they are currently planning to, and one source has actually held the device”.

Assuming this device comes to be, the price would be in line with what you expect in the netbook market. With a 32GB touch selling for $399, I could see this retailing in the $600 range. Throw in a few Apps that let you do some word processing, Wi-Fi, Bluetooth and you have what could pass as a sweet little touchscreen netbook.

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Tags: Apple, iPod, ipod touch

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