AppleBlog and MacWorld are dismissing rumors that Apple is developing a book-sized netbook.
An image of a 10.4-inch MacBook-looking device began spreading on the Web this weekend, apparently traced to a Russian magazine.
Both Web sites claim the image was mostly likely made in Photoshop and is not a real prototype.
Apple has so avoided the low-cost laptop market saying its engineers could not build a quality machine at a netbook price, which is typically under $500.

Image of rumored new Apple product said to be Photoshopped
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I think Apple have criticised netbooks too heavily in the past (particularly in January’s iPad unveiling) for them to ever develop one.