UPDATE 1-Apple event expected soon, but no tablet in sight

* September event likely to focus on iPods - analysts

* Tablet may come later this year or next - analysts
(Adds details on tablet market)

By Gabriel Madway

SAN FRANCISCO, Aug 26 (Reuters) - Anyone holding their
breath for Apple Inc's (AAPL.O) much-anticipated, but never
confirmed, touchscreen tablet device may have to wait a bit
longer than they planned.

Early hopes that Apple could introduce a tablet -- or
"iPad" -- at an event in September have given way to
expectations that the company will instead roll out a refreshed
lineup of its iPod devices.

"It has to be great -- and I don't think it's going to be
ready for September," FBR Capital Markets analyst Craig Berger
said of a tablet device that many expect would likely resemble
a larger, keyboard-less iPod touch.

A number of companies have been working to put their stamp
on a nascent tablet market that has yet to be truly defined,
from personal computer manufacturers to Amazon.com Inc (AMZN.O)
with its Kindle electronic reader.

Apple has a tradition of hosting a glitzy September media
event, using it to launch devices such as the iPod touch model
in 2007 and the iPod nano in 2005. While it has yet to announce
anything, it is widely expected to repeat the practice this
year.

With hopes low that a tablet will be rolled out next month,
analysts say there is little risk that its absence will hurt
Apple's stock.

The year's event would be particularly important if Chief
Executive Steve Jobs were to make his first public appearance
since a nearly 6-month leave of absence for health issues.
Investors will be keen to see for themselves how well he
appears.

Jobs' appearance could overshadow any products at the
event, especially without a tablet. Odds are that the iPod nano
and iPod touch will be refreshed with digital cameras, analysts
say, and the iPod touch could also get a video camera. Apple
could also unveil the ninth generation of its iTunes software.

Although Apple declined to comment, many analysts believe
the tablet may not arrive until later this year or next, given
the company's well-known reluctance to rush any device to store
shelves before it is fully ready for consumers.

Whatever the timing, the prospect of a tablet generates
enthusiasm from those who follow the company or own shares. It
would likely mark a new product line in the company's device
portfolio, which includes the red-hot iPhone, along with the
iPod and Mac computer segments, which have matured.

WHY A TABLET?

Barry Jaruzelski, a partner at consulting firm Booz & Co,
cautioned that the tablet space has proved to be a challenge
for all who have tested it. Apple, he said, must answer one
critical question: "What do I need a tablet for?"

He also noted that Apple's major successes this decade --
the iPod and the iPhone -- were helped by the services that
accompanied them, namely iTunes and the App Store.

"It's got to be something more than just a device. It's got
to be the apps or some sort of solution or service linked to
the device, otherwise it's hard to see how it's going to be
big, as opposed to just nice," he said.

Broadpoint Amtech analyst Brian Marshall expects the device
to carry a price tag of $500 to $600, and have both WiFi and
cellular connectivity, potentially subsidized by Verizon
Wireless in the same way that AT&T (T.N) subsidizes iPhone
purchases. Verizon Wireless is a venture of Verizon
Communications Inc (VZ.N) and Vodafone Group Plc (VOD.L).

He also said expectations are that the tablet will pack a
low-power processor from Samsung Electronics (005930.KS) and a
Qualcomm Inc (QCOM.O) wireless chip.

To be sure, there are tablet notebook PCs already on the
market, including offerings from Hewlett-Packard Co (HPQ.N),
Lenovo (0992.HK) and Fujitsu Ltd (6702.T), with swiveling
touchscreens. Some models cost more than $2,000.

At the same time, e-readers from Amazon.com and Sony Corp
(6758.T) have carved out a solid niche in the marketplace.
[ID:nN24452615]

But analysts envision something different from Apple, more
of a multimedia device.

"If they can develop a fantastic product that's ahead of
the competition they'll roll out with their tablet," said
Berger. "If it's a me-too device, they're not going to come out
with it."

Ankur Crawford, an analyst at Fred Alger Management Inc,
which owns Apple shares, said she does not think the tablet has
been priced into Apple stock or analysts' sales estimates.

Apple's stock has nearly doubled this year, and the shares
trade at around 29 times forward earnings.

She said a tablet would be a way for the company to compete
indirectly with netbooks, which are stripped-down, low-cost PCs
that have become a favorite of consumers.

"I bet a lot of the people buying $400 netbooks will say
'You know what, I'm going to take that extra $200, I'll get an
iPod, I'll get a video player, I'll get so much more, I'll get
this really cool device and I'll upgrade to it.'"

(Reporting by Gabriel Madway; Additional reporting by
Tiffany Wu and Yinka Adegoke; Editing by Matthew Lewis and
Richard Chang)