As if the record-setting iPhone 3GS and rumors of an iPod Touch with a camera and a mic are not enough, the Financial Times is reporting that Apple hopes to have the iPhone-based tablet ready for the Christmas shopping frenzy.
The Apple tablet would have a screen that measures 10 inches diagnally and would be based on the iPhone OS, which gives it access to the huge range of apps available for the iPhone and iPod Touch. While the tablet would lack an actual phone, it very well could act as a phone through Voice over IP services like Skype or Google Voice.
In addition to competing against Windows-based tablet PCs, the iPhone-based tablet would also compete against Amazon's Kindle as a great reader for eBooks. The iPhone and iPod Touch already support Amazon Kindle books and users can also download books to read through the Stanza application or through the new Barnes and Noble eBookstore. And book publishers are in talks with Apple about additional partnerships.
The Apple tablet could also see an increase in movies and video being downloaded through iTunes and its release will come at a time when Apple is in negotiations to bundle interactive booklets, sleeve notes and other interactive features in music downloads.
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