If AppleInsider is to be believed, Apple is going to release another product that uses touch technology. AppleInsider says a small team is already began working on this project.
Like the iPhone and iPod Touch, the new device runs on an embedded version of Mac OS X Leopard and will be 1.5 times the iPhone size and sports 720×480 high resolution display. This is not a PDA nor a Tablet. The Size could be somewhere in between. Like always Apple is trying to start a whole new section in the market.