NetEase claimed that the device will be released around the third quarter of this year to "counter attack" the upcoming Windows tablets. The report further claims that the devices will cost anywhere from US$249 to $299 and that there will be an initial 6 million units ready for launch.
There has been much speculation about a 7.85-inch iPad.
Most recently, Daring Fireball's John Gruber revealed that Apple has such a device in their lab but could not confirm if the company plans to release it.
Also, a Samsung official reportedly told the Korea Times that Apple is planning to launch a smaller iPad this year which will help boost its contract with the company to $11 billion.
If you want to see what an iPad mini might look like, check out these renders.