Rumours of a giant iPod touch (or Apple tablet) have once again resurfaced.

Yesterday the Financial Times reported that Apple "was racing to offer a portable tablet-sized computer in time for Christmas."

According to the Financial Times, Apple has been in talks with book publishers, and recording industry executives. The company allegedly plans to use the device to stimulate new services such as the sale of music booklets. These would offer extra content and be used to promote album sales. The Apple Tablet would also be used for viewing video media, reading documents, and running iPhone-style applications. Like the iPhone and iPod touch these would include games.

Book publishers are allegedly "optimistic" about the device, which could prove an alternative to Amazon's Kindle (also rumoured to be released in the UK this Christmas).

A mock-up of what an Apple Tablet could look like.

However, Taiwanese paper Apple Daily has upped the ante on the FT, by claiming a September release date for the device. If true, this would mean an announcement is just weeks away. Apple traditionally announces new iPod ranges in September and the device could be revealed at the same time.

According to Apple Daily, Wintek has been commissioned to supply the screens and Foxconn has been commissioned to put together the chipset. Foxconn is the company that recently made headlines after a worker allegedly committed suicide after losing an iPhone 3GS prototype.

Rumours point to a 10-inch device similar to an enlarged iPod running iPhone-style software rather than Mac OS X. UK tech-website Electric Pig reports: "what’s interesting here is that this isn’t a translator confusing the iPod touch with an Apple tablet: the report goes on to correct 'foreign media' reports that the Apple tablet won’t be out until next year."

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