RUMOR: Apple’s ‘iTablet’ with 10.7-inch screen to be unveiled January 2010; for sale in May or June

iLounge’s Jeremy Horwitz, citing “a reliable source—who correctly called the iPod nano 5G, iPhone 3GS and Chinese iPhone 3G months ago,” reports that Apple has so far created at least three separate prototypes of its tablet computer.

Version 1 was designed with a 7” screen, which was judged to be too small. The latest version has a 10.7” screen, according to the report.

Horwitz lists 10 bullet points:

• It runs iPhone OS.
• Looks like an iPhone 3G, complete with a curved back.
• 2 models: one with 3G networking capabilities and one without (think bigscreen iPhone 3GS and bigscreen iPod touch).
• 5-6 times the screen resolution of an iPod touch or iPhone screen (720p or thereabouts) and 7 times the touchable surface area.
• Designed to be a slate-like replacement for books and magazines, plus all of the media, gaming, app, and web functionality of the iPhone or iPod touch depending on the model.
• Not a netbook competitor per se. It’s an iPhone OS media player and light communication device.
• Announced on or before January 19, 2010, goes on sale in May or June.
• Project awaits Steve Jobs’ approval; chances of it appearing in the market are believed to be 80% at this point.

Full article here.