David Sieger has written a detailed insight into what he calls “Apple’s rival product to the Intel Ultra Mobile PC (UMPC) initiative.”

He explains that while the project remains highly secretive a few details have emerged through talks with people close to the project.

The device described as a little larger than an iPhone features a touch-screen and is best suited to be held with two hands.

Sieger has also been tipped with a key piece of information about the touch-screen panels used. Apple is supposedly using a German company called Balda who are supplying 5.2-inch touch screen displays. Balda specialises in the design and manufacture of high scratch and shatter resistant, multi-touch capable displays for mobile handsets.

Sieger goes onto make some predictions about recent decisions Apple has made about the iPod touch/iPhone platform and how this could be affecting the secretive ultra-portable project;

According to my sources, the new device is more than likely based on Apple’s current portable platform ( ie. iPhone/Touch ) and once the SDK is released, a little digging inside the platform interface should reveal the extent of the platform’s capabilities and Apple’s plans for the portable multi-touch lineup. Moreover, 3G is part of the device specs with WiFi included as well.

David Sieger concludes with what he knows to date added with some presumptions; the device in question is more of a giant iPhone rather than an ultra-portable Mac.

The device is likely to make use of Intel’s Mobile Internet Device platform which was demoed at CES this year.

Sieger finishes with;

it wouldn’t surprise me if Apple introduced a device that lets users pull media content from their computers and play on a thin portable client and even run small native apps using the device’s limited resources. Such a device is likely a year from introduction although, due to its 3G capability, may be introduced a full six months before being shipped ( similar to iPhone ) to clear the FCC hurdle.