The Wall Street Journal reports that "Apple is working on new iPhone models and a portable device that is smaller than its current laptop computers but bigger than the iPhone or iPod Touch."
In the past decade various attempts by major electronics manufacturers to bring UMPC's (or Ultra-Mobile Personal Computers) to the market have been dismal, massive failures. UMPC's are fantastic for niche markets, medical, industrial, and other specific uses where a larger, tablet-style computer that is more powerful than a cell-phone but smaller and easier to carry than a full laptop computer, and especially where a full keyboard might not be necessary or useful.
Which begs the question of why Apple, a major company devoted almost solely to personal consumer electronics (no IBM is she, dabbling in all sectors of the industry) would bother producing something that will have such a difficult time finding a market. Being larger than an iPhone (meaning too large to fit easily in a pocket), but not as powerful as the smallest laptop, the fabled apple touchscreen tablet is likely to be doomed to being the red-headed middle child of Apple's lineup.
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