Among the evidence is recently rumored behind-the-scenes discussions between Palm and Apple over linking Palm's devices to Apple's new operating system.
Some analysts also cite Apple's deal with Pixo (the company that designed the software for Apple's iPod MP3 player) which includes a license for Apple to use Pixo's software for a second product.
Also interesting is the presence of a variety of features in the new Macintosh OS software that would make more sense in a hand-held device than a desktop computer.
Nobody knows if Apple will indeed re-enter the market they left when they tabled their popular Newton device. They continue to keep their lips sealed but analysts seemed to be convinced. Could Apple enter an already crowded market and carve out a niche for themselves? Stay tuned.