It will connect to the internet like the iPod Touch - probably without phone capability but with access to the web, and to Apple's online stores for software and entertainment.

Apple is gambling that it can succeed where everyone else has flopped, including Microsoft, which tirelessly pushed a tablet-ready version of its Windows operating system as a personal favourite of founder Bill Gates.

The entertainment industry is hoping that Apple, which revolutionised the markets for music players and for phones, can do it again. "It's a portable entertainment device," said one entertainment executive. "It's going to be fabulous for watching movies."

The 10-inch, 3G-enabled tablet, akin to a jumbo iPod touch, is the latest brainchild of chief executive Steve Jobs. That distinction, as insiders will tell you, carries its share of baggage. Under the critical eye of Jobs, contours must be precise, each pixel of the interface has to match a particular vision, and there can be no fault -- no matter how slight -- or it's back to the drawing board.

As such, AppleInsider has observed silently as the project was reset at least a half-dozen times over the past 24 months. Each time, development was frozen and key aspects of the device rethought, retooled and repositioned. At times, those close to the Apple co-founder had their doubts that it would ever see the light of day, just like a smaller PDA device he canned a few years after returning to the company.

However, the past six months have reportedly seen the critical pieces fall into place. Jobs, who's been overseeing the project from his home, office and hospital beds, has finally achieved that much-sought aura of satisfaction. He's since cemented the device in the company's 2010 roadmap, where it's being positioned for a first quarter launch, according to people well-respected by AppleInsider for their striking accuracy in Apple's internal affairs.

The China Times is now reporting that the endlessly-rumored Apple tablet isn't just coming someday—a fair bet—it's coming soon. It'll land in October, to be exact, when we should expect to pay around $800 for it.

The story of the Apple tablet has been one of hearsay and gossip from the start, and this report, despite coming from a respectable newspaper, is no different.

Apple has been experimenting internally with large form tablet devices for years, one source says, but there was concern that users wouldn't like the device. The difference now is the iTunes app store, which has thousands of games and other applications that are perfect for a touch screen device with an accelerometer. Apple says more than 300 million applications have been downloaded since the App Store launched in July 2008. Combine the App Store, iTunes and a browser and you have one heck of a device.