According to a report by TechCrunch, three independent sources have confirmed that Apple is working on a large form iPod touch or iPod touch for a Fall 09' release. The new iPod touch devices would feature a 7 or 9 inch screen, most likely in a true 16x9 format for high definition movies. Apple is taking to OEM's in China regarding production of the new devices.

The new iPod touch would be a tablet style that is part Mac and part iPod. The current iPod touch features a 3.5 inch, so we are talking about a massive change. Expect a higher price than the current line of iPod touch devices. Apple has been rumored to be releasing a tablet for years, but it has never come to fruition. With App Store sales going off the charts, it makes sense to add an iPod touch with a larger screen that lends itself to movies, games and offers a larger screen for web browsing.

via TechCrunch