Apple may be looking to release an iPod Touch with a bigger screen according to Concord Securities analyst, Ming-Chi Kuo, who says that the company may be looking to release it in the second half of 2011.
Speaking to Appleinsider, Kuo says that he is not sure whether it would be a Super iPhone or an iPad Mini. Both however differ on another critical aspect as well other than size; the iPhone can make calls while the iPad can't; it is very unlikely though that the device will be capable of making calls because it would be a rebuttal of what Steve Jobs' criticism of the 7-inch form factor tablet.
Apple however may offer a smaller model, potentially matching Dell's 5-inch Streak one, with the possibility of offering the same screen resolution on a larger display even if it means losing the Retina Display credential with the pixel density dropping to 230ppi down from 326ppi.
Doing so would allow Apple to stick to "save face" by presenting the device as an iPod family member rather than a downsized verision of the iPad. Appleinsider also suggests another interesting twist; media research firms like IDC or Gartner count so-called "Tweener" sized tablets such as the Samsung Galaxy Tab or the Dell Streak as tablets rather than smartphones (which they really are).
By introducing a bigger iPod Touch, Apple may kill two birds with one stone by (a) forcing the competition to turn their focus away from the iPad and instead challenge another potentially cheaper competitor (b) significantly increase the number of tablets sold under the Apple brand.