Digitimes reports that the 8.9" display second generation Eee PC's will be launched in May or June of this year, and could include both touch screen and GPS.

The devices are expected to sell for $500, and are expected to ship with 1GB of ram and 8GB of flash storage.

Frankly, that sounds good, however I am a bit skeptical - when initially announced, the 512MB/4GB/webcam Eee PC was supposed to sell for $199.. and now sells for $399. If we apply the same sort of scaling, the new Eee PC may come in just shy of $1000 - too much in my opinion.