Apple iPod Touch HD on the Way (AAPL)

Remember that bigger Apple (AAPL) "iPod touch HD" we asked for yesterday? It's on the way, according to TechCrunch's Michael Arrington.

TechCrunch: 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.

... I’m not saying Apple is definitely launching a large form iPod Touch. But sources I trust are saying they are currently planning to, and one source has actually held the device.

Sounds good to us. Why should Apple make a gadget like this? As we said yesterday, Apple's iPod touch is a hit, and PC makers like Dell and Asus are doing good business selling cheap, small "netbook" laptops. It's time for Steve Jobs to smash them together into a killer multi-touch tablet.

Arrington isn't sure about pricing. We're hoping for $600, or $700 with more memory. Halfway between the MacBook and the iPhone, right where it belongs. But it's likely Apple would charge another $100 or $200. That'll probably fly with early adopters for long enough until Apple can make them cheaper.

Apple iPod Touch HD On The Way (AAPL)