“According to reliable information, Apple will not follow the current market trend (by producing netbooks with screens about 10.2 or 10.1 inches in diagonal length.) Instead, Apple will produce screens with about 9.7 inches in diagonal length. Touch screen will be installed. Wintek will be the main manufacturer of the touch screen.”

Beyond screen size, there are no other specifications mentioned in the report. But it does include a price: $800. Which is $300 more than the $500-piece-of-junk price point Apple CEO Steve Jobs cited when he dismissed netbooks last October. “There are some customers which we chose not to serve,” Jobs said at the time. “We don’t know how to make a $500 computer that’s not a piece of junk, and our DNA will not let us ship that.”

But will it allow Apple to ship an $800 one? Perhaps something with a P.A. Semi chip? Something that runs App Store apps and offers a sort of middle ground between the iPod touch and the MacBook?

UPDATE: Piper Jaffray analyst Gene Munster just weighed on these rumors in a research note. His thoughts, below:

On 7/13 Asian media reports suggested Apple is planning a tablet/netbook in Oct-09. Last week we spoke with a Taiwanese component supplier and continue to believe that Apple will launch a tablet, not a netbook, by early CY10. … We expect [it] to be a touchscreen device in the $500-$700 range (between the iPod Touch and MacBook).

[Image Credit: Adam Benton]

What it meant to say was that it planned to sack 1,900 employees during the fourth quarter of 2008, as evidenced today by the company’s announcement that it will lay off 400 more employees than originally expected this year. It should be noted, though, that these positions are part of the cost cutting actions previously announced in October.

“On December 23, 2008, the Company approved certain additional plans relating to these cost-reduction initiatives,” Motorola said in an SEC filing. “These additional actions, plus other actions approved since October 30, 2008, relate to the termination of approximately 400 employees, resulting in additional pre-tax severance charges of approximately $25 million in the fourth quarter of 2008.”

What a nasty shock for those 400 employees who thought their jobs would survive through to the new year, eh? The elimination of their positions brings the total number of employees laid off at Motorola to about 12,000 since the beginning of 2007. 2009 isn’t looking too promising for the struggling handset maker, which is already heading into the new year with a junk credit rating amid a chorus of analyst skepticism.

“We believe demand has deteriorated across most of the company’s core end-markets, with a particularly sharp slowdown in handsets, evidenced by a number of key supplier and competitor pre-announcements,” Sheerin wrote in a note to clients. “[The economic downturn] will make a recovery in the core handset business even more challenging and could accelerate cash burn.”

More ugly news for Motorola (MOT), which last week had its credit rating slashed to Junk by Standard & Poor’s.