Among the vendors who are working on a touch tablet PC is HTC, which is confident it has a product that will compete head-on with the Apple offering.

This is the same company that is set to partner with Google, and which is tipped to be launching a brand new smartphone called the Nexus One on the 5th of January 2010. 

Google has sent out invites this week for an "Android press gathering" at its US headquarters. However, it has declined to give any specifics on the forthcoming announcement. There is no news on whether the phone will launch in Australia at the same time as the US.

HTC, which been working closely with Google for the past 18 months, has several working models of a touch tablet, including one model based on the new Google Chrome Operating System, say sources.

An Android-based device that is set to be shown privately to core HTC customers at the CES Show is set to incorporate new Qualcomm processors, touch technology and new software from Adobe.   

Google developed the Android operating system for mobile phone operators, with several, including HTC, Motorola and Samsung, now rolling out new models.

The Nexus One—a reference to the film Blade Runner—will run the Android operating software in a handset developed by HTC. Photos of the Nexus One have since circulated the internet, with even a YouTube video emerging, which had a detailed look at the new device's interface.