DigiTimes senior analyst Mingchi Kuo reports that Apple is planning to launch a smaller version of the iPad early next year. The size of the mini iPad will be from 5-inches to 7-inches. The cost will be under $400.
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.
If this is true it seems like the new device would compete with Apple's own iPod Touch. One of the jokes about the iPad is that the iPhone is technically an iPad Nano.
You can find more discussion of the smaller iPad here.
DigiTimes senior analyst Mingchi Kuo 
