Don’t you wish the iPhone and iPod Touch have stylus input? If you ask me, a stylus will definitely improve the usability of Apple’s touch screen gadgets, and with full document support it has the potential to cross over to the PDA and UMPC market. According to AppleInsider, very reliable sources have told them that Apple is working on Newton 2.0. It will definitely be a PDA, not a phone or a PMP, so this is not just an iteration of the iPhone or the iPod Touch. To prove that Apple is indeed working on a new Newton, the sources say that engineers working on the device were pulled out in June to work on the iPhone. So Newton 2.0 will have similarities to the iPhone like multi-touch and OS X. Some of the rumored specs of the Apple Newton 2G: 1.5 x the iPhone’s size, 720 x 480 screen, drag-and-drop interface. The device will have more use of OS X and, hopefully, it will be a small Macbook with a multitouch screen.

[appleinsider via tuaw]