The Guardian reports that the Financial Times (subscription required) reports that is working on a tablet computer. The story is here. And here is a report from AppleInsider.

I remember once, when I was going from Philadelphia to Washington, DC, on the choo-choo, sitting next to a guy who had an tablet computer–I think it was an Intel. It was interesting, but it pretty much left me cold. Nice gadget, not for me.

He was using extensively one feature that a regular laptop does not lend itself to: handwriting recognition. He wrote a lot of notes directly on the screen and saved them to a file.

Here’s a little bit from the Guardian story:

    . . . there is also speculation that the new – and so far unnamed – tablet computer will contain ebook capabilities, and that book publishers have been talking to Apple about the reading capabilities of the new system, which would be an immediate rival to Amazon’s Kindle. “It would be a colour, flat-panel TV to the old-fashioned, black and white TV of the Kindle,” one publishing executive told the FT.

    The FT reports that the company, which just announced record financial results despite the economic downturn, is working to release the tablet-style machine in September along with new iPods.

    The device is expected to have Wi-Fi capabilities and to be able to download and stream music and run applications just like the iPod Touch.

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