Rumors are flying that Apple will release a small tablet like device. Some see it as a MID, Mobile Internet Device, and some see it as a hand held gaming device. It could be both.

In the past, Apple has put a lot of emphasis on its iPod touch as the next generation device, without a phone, to carry on the iPod tradition. The fact that sales of the entire iPod family are peaking but the revenue is increasing affirms that Apple is moving its customer base over to the more expensive iPod touch.

So what would be the next logical step? A dedicated gaming platform? I doubt it. Games are on Apple’s radar, but not as a dedicated device, just as they aren’t the sole focus of the iPhone.

I think there’s room in the product line for what I’m calling the iPod superTouch. It would be a slightly larger device than the iPod touch, hence the tablet rumors, but it would be an iPod touch through and through -- but slightly more expensive, to nudge the Average Selling Price of the iPod line a little higher.

It would play all the games the iPod touch does, have a better viewing experience for Safari, and allow Apple some additional freedom of design for more exotic features that we want in a MID - cut and paste, interface to the file system, larger virtual keyboard, etc.

An expanded iPod touch makes sense considering what Apple has been saying at its earnings reports. It fits into the product line, expands it, and meets the needs of people who want a slightly larger device to support video, medicine, gaming, and surfing.

It’s just a guess.