Apple Insider claims Apple is planning to re-enter the sub-notebook market:
So it's almost uncanny that Jobs, nearly ten years from the day the PowerBook 2400 first saw light, will revitalize Apple's footprint in the sub-notebook sector with a petite MacBook that promises to be everything a modern day 2400 should be, and much, much more. (Ironically, it also took the company nearly a decade to introduce a notebook that was more compact than the original PowerBook 100. The Titanium PowerBook G4 introduced in 2001 measured 127 cubic inches compared to the PowerBook 100's 168.)
This new tiny MacBook, people familiar with the project say, remains in development ahead of its target launch date around the time WWDC rolls around mid-year. It will be both lighter and more compact than any other Mac portable Apple has put forth in recent years, bundling a display of similarly smaller proportions.