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New york-Apple and four record companies are working on a plan to increase digital sales of albums, while the computer maker is also developing tablets separately
According to the Financial Times on Sunday, the device is in large size.
According to the newspaper, Apple is working with Universal Music groups at EMI, Sony Music, Warner Music and Vivendi on the "cocktail party" project, which both sides hope to launch in September, citing anonymous sources
The project, which works with record companies, aims to provide interactive features for music downloads, the newspaper said.
Apple is also hoping to launch the tablet.
According to the Financial Times, computers are the right size for Christmas shopping.
According to the newspaper, the computer will be connected to the Internet like Apple's iPod Touch, and its screen may be up to 10 inch diagonally.
Book publishers have also been negotiating with the computer maker to offer their services on new devices, which could compete with Amazon's Kindle, the paper said.
Apple and the music company did not immediately comment.