Apple’s new product for the Netbook Market

Apple is coming up with a new kind of touch-screen device that is bigger than its iPhone but smaller than a laptop.

The device, according to published reports, will be a kind of miniature tablet computer. Like the iPhone, it would be able to access the Internet over cell phone data networks, allowing users to surf the Web just about anywhere. And analysts expect that, like the iconic smart-phone, the retail price would be subsidized by wireless carriers.

Those rumors have heated up amid the growth of the netbook market. Recent reports suggest that Apple will announce at least two new devices, including an updated iPhone, at its June developer conference in San Francisco. It’s unclear whether Apple will also unveil the new, larger touch-screen device.

Netbooks are small, low-cost laptops that are the fastest-growing category of PCs. They’ve become popular replacements for standard notebooks for travelers and families looking for a second or third computer in the house.

Netbooks sell for about $500 retail, but wireless providers offer them for as little as $100 upfront. They market them like cell phones, selling them below cost and making up for it with a monthly subscription fee from consumers.