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UPDATE II: In a statement announcing today's deal, NextWindow chief executive Al Munro says “NextWindow’s development of optical touch technology complements Smart’s efforts, and I’m delighted we’re becoming part of Smart." 

BusinessWeek cites an inside source at Apple who confirms this morning’s analyst report that the company will produce a touch-screen tablet device next year.

The rumour mill has the absent chief executive working hands-on from home, driving a touchscreen netbook/tablet project to be released soon after his scheduled comeback.

Over the weekend, The Wall Street Journal reported that while acting chief executive Tim Cook runs Apple day-to-day, “Mr Jobs as continued to work on the company's most important strategies and products from home,”

Probably. Rumours continue to fly around the web as Apple - possibly, maybe - mulls a move into the super-hot ultraportable category with a touchscreen model.

Reports in the Taiwanese press detail how Apple has been ordering touch panels for a coming netbook form-factor device.

DigiTimes, quoting the Chinese-language Commercial Times says “Taiwan-based Wintek will supply touch panels for Apple's new netbook, and shipments will start in the third quarter this year.”

The rumour mill has Nokia is set to announce its first touchscreen phone at a London event this Friday, New Zealand time. The company has declined official comment.

Nicknamed “the Tube,” the new handset is widely viewed as an attempt to take on Apple’s iconic iPhone – an impression further enhanced by leaks indicating the Tube will be paired with Nokia’s “Comes With Music” service.