Apple owns the domain Applepico.com.
One of the tasks companies have to take care off when they launch a new product is to register the most obvious domain names for it. Motorola just got spotted to register a bunch of domains for "Motorola Kore." MacRumors reports that Apple just showed up as the owner of the domain ApplePico.com.
Of course this triggers immidiately some product ideas. Apple Pico could be an Apple branded Pico Projector. Pico Projectors got also integrated already in cameras and phones. So it could mean that Apple might offer such a feature in future iPhones and iPods. I do not think that this indicates that Apple is going to use pico for a new tiny iPhone or iPod. I did not see Apple owning the domain Applenano.com for instance.