"From a platform point of view, it'll be an iPod Touch, but from a form factor point of view, it's got to be a good deal bigger," said Gottheil.

Reports from Asia last month had claimed that for 9.5-in. to 10-in. touchscreens.

"They may not make it with a keyboard," Gottheil continued. "There was a lot of talk today by them about 'cramped keyboards.' I think it would be a mistake to make the keyboard not essential, but every company has its prejudices, and Apple is not a keyboard-friendly company."

While Mac sales slipped, sales of iPhones in the quarter surged: Apple sold 3.8 million of the smartphones, 123% more than the same quarter the year before. The number was significantly higher than many analysts' projections: Brian Marshall of Broadpoint AmTech, for example, had estimated Apple would sell 3.15 million iPhones.

Cook also called out the iPod Touch as a big seller, though he declined to get specific; Traditionally, Apple does not specify how each iPod model has done. "The iPod Touch is a runaway hit," said Cook, "and clearly that's been driven by the App Store."