New rumors about a smaller iPad are popping up. Imore.com claims to have heard from a "reliable" source in Apple labs that the company is planning to release a 7-inch iPad, dubbed so far as iPad Mini, by October 2012, with the retail price somewhere between $200-250.
According to iMore, Apple will be releasing the smaller iPad at such a price to aggressively fight budget tablets running the Android OS, more specifically, Amazon's Kindle Fire. And if Apple does release a $200 tablet, there will be no room for anyone else.
The specs of the 7-inch iPad will be identical to the current 9.7-inch iPad model (except, obviously, in screen size). It was said that Apple will be able to keep prices down while sporting the Retina display by having the iPad Mini at only one option of storage, which would be 8GB.