If the reports are true, coming from a not-so precise Chinese-language publication, at least when it comes to predicting Apple’s products based on supply chain reports, Apple is in the process of developing a netbook, which will hit the markets later this year.

According to the Commercial Times, a Taiwan business newspaper with a with a mixed record when it comes to such rumors, via DigiTimes, Taiwan-based Wintek, a company that makes LCD displays, will supply touchscreen panels for a new Apple product to be built by Quanta Computer. Wintek reportedly expects shipments to begin in the second half of the year. However, not even Wintek has any idea what the new product is, nor is there any confirmation from Apple that such a netbook is in the making.

Every now and then for the past while we've been hearing various ideas about a new Apple gadget aiming to penetrate the increasingly sub-notebook niche as well as new touchscreen Macs. Obviously, the revelation has the Web buzzing that this move marks Apple's first foray into the netbook market, regardless of Steve Jobs' and Tim Cook's past denials.

In the months following Apple’s update to its notebook line in October, netbook speculation persisted, prompting Jobs to deny the reports saying, "We don’t know how to make a $500 computer that’s not a piece of junk."

"Our DNA will not let us ship that," he said last October, when asked if users were going to see cheaper computers from Apple.
Questioned directly about the netbook market, he was dismissive. "We’ll wait and see how that nascent category evolves, and we have got some pretty interesting ideas if it does evolve." Besides, he added, Apple already has a product that fits the bill.

"You know, one of our entrants into that category if you will is the iPhone, for browsing the Internet, and doing email and all the other things that a netbook lets you do. … An iPhone is a pretty good solution for that, and it fits in your pocket."

In January, Apple COO Tim Cook echoed Jobs' ideas telling inquiring analysts that netbooks were "principally based on hardware that’s much less powerful than we think customers want. Software technology that is not good, cramped keyboards small displays. … We don’t think people will be pleased with those products. It’s a category we watch, we’ve got some ideas here, but right now we think the products are inferior and will not provide an experience to customers they’re happy with."

For anyone who isn't very much in touch with the recent computer sales trends,  netbooks are inexpensive, entry-level notebook computers that sell for low prices, generally around $500 or less.

As far as Apple is concerned, the company is known for making good laptops, but not for making inexpensive ones, and many are skeptical that Apple would make a notebook that sells for anywhere close to $500. However, it's possible the company could be developing a netbook that sells for considerably below its typical price range without getting near the $500 mark.