Apple has developed prototypes and is holding production talks with OEMs in Asia regarding mass production, according to the paper.

The devices would have a 7- or 9-inch screen, according TechCrunch, which compares to the current 3.5-inch screen of the current generation of iPod touch.

The site doesn't compare a larger iPod touch to a Netbook, but notes that Apple has experimented internally with tablet devices for years.

Earlier this year, Apple created some buzz after reports of some tablet-like patent applications. In August, AppleInsider.com described a 52-page document with illustrations that include such features as a touch-screen keyboard and more.