Here's a look at blog post from Seeking Alpha that details the supposed Apple UMPC device:
Then about a month ago, another source revealed that Apple has shown significant interest in a 5.2″ 800 x 480 pixel touch screen design by Balda, a German company and the current iPhone screen supplier, and Wintek, an Asian component supplier. This second piece of evidence reveals the real purpose of this new device, an ultra mobile device occupying a position between the 3.5″ iPhone and the much rumored 7-10 inch Apple tablet. There was also a previous article I wrote which highlighted Apple's sudden concern for flash memory supplies in 2008, despite industry predictions for next year which emphasize greater production and softer demand. This further confirms that Apple is working on a new device due sometime in 2008 that will put strains on the flash memory supply chain.
If this rumor pans out, the new Apple handheld would be some kind of touch-screen device that is somewhere between the iPhone and the long-awaited 10-inch Apple tablet of lore. Wait, there's more:
This new Apple device, which could be an Ultra Mobile Computer, has not been sighted out and about the Apple campus or even in the area normally designated for testing new Apple products, suggesting that it's still in the software and hardware design period. Once it's physically spotted outside Apple's secretive labs, we may see an actual product release of 6-8 months, closely following other new Apple product introductions.
So this is still purely speculative, but it does look as though Apple is cooking up some kind of new handheld. While this could be the new 3G iPhone, it looks like a larger UMPC-ish handheld. Here is a look at what the device might look like.
What do you think? Is Apple working on a UMPC? And will Steve Jobs announce it at Macworld next month in San Francisco?