Apple is reportedly preparing a smaller 5-7 inch iPad which could launch as early as the first quarter of next year, according to Digitimes Research senior analyst Mingchi Kuo.
Kuo, citing talks with upstream component sources, said Apple's smaller-size iPad will be priced below US$400 and will target the highly-portable mobile device market and consumers that focus mainly on reading and do not have a high demand for text input.
That would be one of the dumbest business moves Apple could do, the problem isn't with the screen size so much but what the OS is capable of doing and it's handicaps. The iPad isn't worth anything with it's current OS abilities. Though if no one has learned from Apples iPhone and iPod Touch mobile devices to never buy first gen or even second gen from Apple then they deserve what they get. If a 'mini' were to come out do you really think it'd be worth anything?
Highly unlikely... There is already so much criticism that the iPad is just a big iPod Touch. Developers had to redesign their iPhone apps for the new iPad size... does anyone think that Apple would do that again so soon? Just because the proportions are the same doesn't mean you just shrink the app and voilà!