Apple is in a hurry to get its constantly speculated on latest portable entertainment device to shelves in time for Christmas, which will feature a touch sensitive screen up to 10 inches wide diagonally.

Despite many reports tipping the device for early next year, the Financial Times is reporting that the device is expected to be launched this year alongside new content deals, with some aimed at stimulating higher-profit album music sales, “according to people briefed on the project.”

Apple is said to be in talks with the big four record labels EMI, Sony, Universal, and Warner regarding bundling interactive booklets, video clips, lyric sheets, sleeve notes and other interactive features with album downloads, in a bid to reverse the trend to buying only singles on iTunes.

The project is said to be named “Cocktail”.

While Apple has popularised and legitimised buying music online with its iTunes store, the move online has led to a sharp decline in album sales which have higher margins than individual tracks.

Connectivity

Like the iPod Touch, the device will likely lack phone connectivity but will be able to connect to the internet via Wi-Fi and wireless carriers’ 3G networks according to AppleInsider - and thus to Apple’s online stores.

Watch out Kindle

Book publishers are also currently in talks with Apple, as the device’s screen size will make it a compelling alternative to Amazon’s Kindle, Sony’s Reader, and the forthcoming Plastic Logic device Barnes & Noble is touting for its e-book store.

“It would be a colour, flat-panel TV to the old-fashioned, black and white TV of the Kindle,” one publishing executive said to the Financial Times.

While Apple doesn’t appear to be talking to film studios - yet – the device will be “fabulous for watching movies” according to the Financial Times, and large game publishers are also keen to optimise games for the platform.

More rumourmongering

MacDailyNews reports its source who tipped off the wireless iTunes store sales direct to iPod a week before that launch is saying this of the device:

Think MacBook screen, possibly a bit smaller, in glass with iPhone-like, but fuller-featured Multi-Touch. Gesture library. Full Mac OS X. This is why they bought P.A. Semi. Possibly with Immersion's haptic tech. Slot-loading SuperDrive. Accelerometer. GPS. Pretty expensive to produce initially, but sold at "low" price that will reduce margins. Apple wants to move these babies. And move they will. This is some sick shit. App Store-compatible, able to run Mac apps, too. By October at the latest.

While many others have tried a tablet format before and failed (most notably Microsoft), Apple has proven its ability to enter so-called mature, saturated markets, and bust out a game changer: the iPod reinvented the walkman market like the iPhone reinvented the mobile phone market.

The rumoured price of anything from $US500-$1,000 will no doubt be crucial to the device’s success.


Image mockup via Gizmodo