Frankly, can’t see the use of this unless it is tablet styled computer, otherwise it’s a Newton.

“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.

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. Apple says more than 300 million applications have been downloaded since the App Store launched in July 2008. Combine the App Store, iTunes and a browser and you have one heck of a device.

We don’t have any information on pricing. The current iPod touch, with a 3.5 inch screen, starts at $229. The 32 GB model is $399. We expect the price on the larger iPod touch to be significantly higher.