Their source reveals that Apple has created at least three prototypes for the tablet. The first prototype was created with a 7" screen but it was considered too small. The latest version is using a 10.7" screen.
The tablet is said to run iPhone OS and be very similar in design to the iPhone, complete with a curved back.
It will be sold in two different variations. One with 3G and one without.
The screen resolution is expected to be 720p or thereabouts and the device will have 7 times the touchable surface area. It's designed to expand on the media capabilities of the iPhone as a slate-like replacement for books and magazines, plus all of the media, gaming, app, and web functionality.
The iLounge source says the tablet is not meant to compete with netbooks. Its an iPhone OS media player and light communication device.
Apple's current plan is to announce it on or before January 19, 2010, and build media hype until it starts selling in May or June. All that is required is the go ahead from Steve Jobs.
Apparently the chances of it appearing in the market are at about 80%.