While the Apple Newton PDA sank with less trace than Leonardo DiCaprio in Titanic, it appears Steve Jobs isn't ready to give up on the format just yet.
Dedicated Apple bloodhound AppleInsider is reporting that it has rock solid info that the company is currently working "full steam ahead" to produce a multi-touch based Newton successor for release in Q2 2008.
AppleInsider even goes so far as to state a couple of specifics about the device proclaiming that it will be 1.5x the size of the iPhone with a virtually full front screen and 720 x 480 native resolution display (proportional impression courtesy of AI). Interestingly, AppleInsider says the device has been in development at Apple for some time with engineers actually called off the project earlier in the year to help push the iPhone through the door.
Of course all this is to be taken with the usual fists full of NaCl, but the site did correctly predict that Apple's iPods would be moving to OS X so it does have pedigree.
Warning: Mouth. Drooling. Control. CONTROL!