“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. Prototypes have been seen and handled by one of our sources, and Apple is talking to OEMs in Asia now about mass production,” Michael Arrington reports for TechCrunch.

“Apple has been experimenting internally with large form tablet devices for years, one source says, but there was concern that users wouldn’t like the device. The difference now is the iTunes app store, which has thousands of games and other applications that are perfect for a touch screen device with an accelerometer,” Arrington reports.

“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,” Arrington reports.

Full article here.

[Attribution: AppleInsider. Thanks to MacDailyNews Reader “James W.” for the heads up.]

MacDailyNews Take: This dovetails pretty nicely with our “MacBook touch” report from July 22, 2008 (even if our source was a year off – or maybe he/she meant “October 2009”):

Think MacBook screen, possibly a bit smaller, in glass with iPhone-like, but fuller-featured Multi-Touch. Gesture library. Full Mac OS X. This is why they bought P.A. Semi. Possibly with Immersion’s haptic tech. Slot-loading SuperDrive. Accelerometer. GPS. Pretty expensive to produce initially, but sold at “low” price that will reduce margins. Apple wants to move these babies. And move they will. This is some sick shit. App Store-compatible, able to run Mac apps, too. By October at the latest.