It seems there is a lot more going on with this new Apple Tablet than a lot of people suspected at first.

According to the Financial Times (free registration required), not only is the tablet basically an over-sized iPod, but it is going to be an ebook reader.  Speaking to multiple sources, the paper found out that the device is codenamed “Cocktail”, and that Apple is in active negotiations with major book publishers about supplying the new device with content.

If these rumors prove to be true, this would be a direct, and probablys serious, blow to Amazon’s popular Kindle reader.  Seeing as Amazon is insisting on sticking with a gray scale screen at this time, the uses for textbooks and magazines has been somewhat limited.  The “Cocktail” would be launching with a multitouch color screen, and could be quickly adapted to serving up textbooks all across various school systems.  Imagine susbscribing to a paper like USA Today or Time magazine and having it delivered to a full color, zoomable, multitouch screen.  You quickly begin to see the distinct advantages this device would have over the Kindle.

There are also reports that timed to coincide with the launch of this new device will be a new music deal being struck with the four biggest record labels (EMI, Sony Music, Warner Music and Universal Music Group) that would give you bonuses for buying full albums as opposed to inividual tracks.  You could be treated to an interactive booklet, liner notes, lyrics, videos and more.

Word is that the new device will release in September with the traditional refresh of iPods, placing it in perfect position for the holiday shopping season.  Parents may as well start lining up now for what is sure to be one of the most in-demand items with consumers of all ages this holiday shopping season.