Rumours of an imminent 'Apple iTablet' refuse to go away, with the iPod maker reportedly in talks with book publishers and record industry executives over planned content for the device, according to the Financial Times.

Apple plans to use the device to stimulate new services such as the sale of 'music booklets'. These would offer extra content and be used to stimulate album sales. The device would also be used for viewing video media, reading documents, and running iPhone-style applications. Like the iPhone and iPod touch these would include games.

Book publishers are allegedly "optimistic" about the device, which could prove an alternative to Amazon's Kindle (also rumoured to be released in the UK this Christmas).

However, Taiwanese paper Apple Daily has upped the ante on the FT, by claiming a September release date for the device. If true, this would mean an announcement is just weeks away. Apple traditionally announces new iPod ranges in September and the device could be revealed at the same time.

According to Apple Daily, Wintek has been commissioned to supply the screens and Foxconn has been commissioned to put together the chipset. Foxconn is the company that recently made headlines after a worked allegedly committed suicide after losing an iPhone prototype.

Rumours point to a 10in device similar to an enlarged iPod running iPhone-style software rather than Mac OS X.

See also:

Amazon Kindle DV review

Macworld UK