Yesterday the rumors about an Apple Tablet device made their rounds again. Apparently Apple would release a $800 Apple Tablet already in October.
VentureBeat adds some more rumors that say that the Apple Tablet would have a PA Semi custom chip.
Apple bought the chip design firm PA Semi last year and we are still waiting for the first Apple product that will have a chip no other vendor will have.
VentureBeat says that the PA Semi team have beens split. One works team works on portable ARM-based processors for iPhones and iPods, and the other is designing a chip for the tablet device.

I still think an Apple Tablet will be a niche product that will not find a big market. A 9 or 10 inch Apple Netbook at a price point around $500 would be another story.