Bridging the yawning gap between its $400 32GB iPod touch and $1,000 MacBook, Apple will likely launch an iPod-like touchscreen tablet, costing between $500 and $700, in the first half of next year!

According Piper Jaffray analyst Gene Munster, there are a few indicators pointing at the rumored tablet - Apple has recently been showing interest in chip designers, and has also taken over the low-power chipmaker PA Semi; and has been
endeavoring to add multi-touch features to its core products, including Macs, iPhones, and iPods. 

Reports about a prospective iPod-like tablet from Apple have been making rounds for quite some months. There have been speculations abound about the device, which some say would be like the iPod touch with a large 7- to 9-inch
touchscreen. The large screen would not only provide a better gaming experience, but also support HD movies as well as some desktop-style apps. 

Elaborating on the likely Apple tablet, Munster noted: “Specifically, we expect a larger, 7”-10”, touchscreen tablet that will launch in 1H CY10. Additionally, Apple’s consistent message that it refuses to launch a “cheap” portable netbook, and its
desire to differentiate itself in a maturing market before it’s too late, plus its gradual addition of multi-touch technology to all of its core products leads us to conclude this product will be a touchscreen tablet.”