iPhone/iPod Pro ((Newton is back))
Interesting story. I know this 'return of the Newton' rumor has been beaten to death, but AppleInsider is usually quite reliable...
http://www.appleinsider.com/articles/07/09/26/up_next_for_apple_the_return_of_the_newton.html
IMHO, this could be an extension to the iPhone line, ie. the introduction of the iPhone/iPod Pro. It makes perfect sense to me to extend the iPhone product line in 2008/2009...
If you think about it, the classic iPod and even the iPod Touch will be hard to sell in a few years time once the additional iPhone wireless ingredients are so cheap to manufacture. The more expensive iPods need a successor.
This new device would also allow to digitize the last physical format that hasn't taken off yet in digital form: Books ((and notebooks, because old-school PDAs weren't flexible enough to replace them because of many size/battery and writing recognition limitations solved since the introduction of the Newton family)).
My thinking goes:
CDs -> iPod
Movie Tapes/Cassettes -> iPod Touch
Books/Notebooks -> iPod/iPhone Pro
I predicted that Apple will release an iReader one day, this could be incorporated in such an iPod/iPhone device once the battery/display problems of eBooks displays are solved ((think E-Ink 2.0. However, this is probably further ahead in time)).
Of course, it also has the 'normal' iPod and iPod Touch functionality, so the iPod Pro could also control your Apple TV ((or iTunes etc)) remotely over WiFi....and be used in your car ((GPS functionality))
Finally, such an iPod Pro would also allow for third-party applications to be installed.
Therefore, contrary to AppleInsider, I see this more as an evolution/extension to the iPod product line, not an entirely new product line frm Apple.
To the naysayers: This is NOT a new PDA. This new device would be Apple's answer to the UMPC platform and run OS X ((this device might be completed with a more traditional upcoming Apple subnotebook with a 7'' to 10'' screen)).
PS: As someone mentioned in the Appleinsider forums, look at these recent Intel presentations and slides and connect the dots...
http://www.anandtech.com/cpuchipsets/intel/showdoc.aspx?i=3103&p=2