The rumour mill is spinning once again as analysts and fans alike speculate on what we can expect Apple to showcase at is major annual show Macworld next week. Blu-ray Macs have been predicted by analyst Shaw Wu at American Technology Research, though Wu says there is a possibility that Apple may opt out of the format war and instead install a combo reader that plays both Blu-ray and HD DVD discs.

It's worth noting however, that even if Apple fulfills Wu's second prediction, the company will still not be technically neutral in the format war. The company is actually already a member of the Blu-ray Disc Association (which it has been since 2005). Rival Microsoft is a supporter of the HD DVD format.

Apart from Blu-ray support, Wu also predicts that Macworld will be the launching pad for a new tiny Macbook which will run on NAND flash storage as well as new iTunes video rentals.

Website www.macrumors.com  also mentions rumours of iTunes video rentals via Warner Brothers, Paramount, Walt Disney Co. and Lions Gate Entertainment, as well as updates to Leopard and Mac Pros as possible announcements at Macworld. 

As always, Apple is remaining tight-lipped about upcoming product announcements. But whatever may be in store at Macworld, JupiterResearch analyst Michael Gartenberg, for one, believes this year's show will be a big one.

"Over the last few years, Apple has cast a long shadow over CES, even though it has not attended the event. Last year, when the two coincided, all anyone was talking about in Vegas was the iPhone launch. It's always amusing for me to see how much speculation there is leading up to Macworld and almost none for folks showing at CES.

"2007 was a huge year for Apple. The iPhone launch, the Apple TV launch, new iMacs and iPods and of course, Leopard. That's a tough act to follow but I suspect Macworld will be quite important this year," he wrote on the company blog.