Seen on MacNN -- according to this Mercury Center article:
"Apple, notoriously tight-lipped about its product plans, on Monday called the handheld rumors totally unfounded.
'We are focused on the personal computer space, not the handheld space, and that's that,' said Phil Schiller, Apple's vice president of worldwide product marketing. 'I hate to use these words, but there's nothing going on.'"
But according to MacOS Rumors:
"One source went so far as to say that 'Phil's statement is true, but not the whole truth. There aren't any plans to ship a handheld....but what was once the hand-held project is now the 'Net appliance project. Most of the features and plans are the same, just a different set of requirements and a different target market.'"
