Rumors about Apple taking another go at the handheld market have been around since the downfall of the Newton. The difference this time is that they've created a whole new market segment for themselves. If they can roll out a device that supports multimedia while being a handheld web tablet, they could really blow open that niche.

PDAs still struglle to find serious use beyond business clients and, these days, convergence is becoming more popular as a way to cut costs. RIM's success has shown that while a device may not be a master of individual functionality, a good combination of features into one device has a place in the market. Given that, I don't necessarily think that Apple would go the strict PDA route.

A full blown tablet also seems unlikely given the struggles that form factor has had. Consumers just aren't seeing the necessity of a tablet over a small notebook. Some have suggested, and I agree, that the lack of very desirable or must have tablet based software is also a culprit. Apple could do a lot ot change this, but their focus these days is on consumers and their multimedia interests vs. corporate customers and business needs.

It might work it's way out of the pocketable category (although many people wouldn't consider the 770 and most PDAs in general "pocketable" like most cell phones are) but could be a huge success nonetheless. Full web-browsing capabilities (although some folks have more than a few gripes about Safari), music and video playback, photo viewing, and perhaps even some basic functionality from other apps. Package it up in a the usual Apple slick exterior and you could have yourself a real winner.

Sounds like the 770, right? Do yourself a favor Nokia, get it out there en masse before Jobs comes along and steals your thunder.

Jeff