Apple rumours are heating up again in the build up to MacExpo in Paris on the 11th of January. The latest, posted by Think Secret, is that Apple will be announcing a low cost sub $500 (£260) computer.

The machine, which will be aimed at swaying users of the iPod to invest in an Apple computer, without the risk of spending a lot of money if they have concerns over compatibility.

At present Apple's lowest computer costs $800 in America and around £550 in Britain.

According to Think Secret, the new Mac is code-named "Q88", and will be sold without a screen. Is expected to sport a PowerPC G4 processor at a speed around 1.25GHz, and be incredibly small. The site also believes its size benefits will include the ability to stand the Mac on its side or put it below a display or monitor.

We will let you know more news when we have it.