My concept of an Apple Netbook (quickly edited from Apples iPod Touch image).

Netbook Concept

Specs different than iPod Touch:

Screen size: 6″ screen similar in size to Amazon’s Kindle.

Resolution: 160 dpi (shown) or 96 dpi

Processor: Balance power and battery life, more powerful than iPod Touch.

Graphics: Powerful enough for more sophisticated gaming, balanced with battery life.

GPS: At least as accurate as Garmin’s first generation handhelds.

Battery: Borrow technology from 17″ Macbook Pro

Increasing the screen size creates a new problem.  If you hold the pixels so that existing iPod touch apps work correctly, the screen drops from 163 dpi to approximately 96 dpi.  This is still very good compared to traditional monitors, but blurry compared to iPod Touches and Kindles.  My preference is to create a new dpi standard 1.7x to 2x the current iPod touch resolution and hold the dpi at approximate 160.  This would create a screen very near that of the Kindle 2, only in color.  Naturally, this would require developers to make new versions of their apps to fit the new device.

Several opportunities are opened up by the larger screen real estate.  The first is eBooks similar to the Kindle become very practical.  The eBook reader could drop to greyscale display to save battery and create a better reading environment when possible.

Web surfing is naturally easier, but still not the experience of a full sized laptop.  Traditional netbooks are not significantly impacting net usage statistics the way iPod touches are.  This is likely due to the very portable nature of iPods compared to even small netbooks.

Totally new applications become more realistic, perhaps light aircraft navigation.  As a pilot I can imagine this attached to a yoke or strapped to my leg now.  Game developers have an entirely new canvas to develop more sophisticated games.

This concept is not only buildable, but importantly for Apple, profitable at netbook price points.  It adds additional revenue streams to the App store from eBooks and more powerful apps.  A natural extension of the iPod family and the App store, and still within Apple’s strategic goals.

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Tony Smith at Reghardware takes a look at the Netbook marketshare outlook.  Passes the common sense taste test.

I certainly hope Steve is not seriously ill following this announcement today.  This follows last week announcement of a hormone imbalance, implying his condition has likely worsened.

Hurry back Steve.

I was going to write my own predictions for macworld 2009, but John Gruber of the excellent Daring Fireball Blog already wrote it more eloquently than I could.  Spot on John… Spot on.