Yet another RumorTT on Apple, but today we're talking about the long-time rumored mini iPad, where according to DigiTimes' supplier sources, have sample units in the wild. Production is said to be some time away, and won't start until summer "at the earliest".
If the mini iPad does get released, we should be looking at it hitting head-to-head with Amazon's much better priced Kindle Fire, so around the $249 to $299 mark. Apple is right now, the only company that can compete with Amazon's Kindle Fire, or Barnes & Noble's Nook Tablet.
Steve Jobs famously dismissed the idea of a smaller iPad, due to the number of interface elements that they would have to sacrifice to make it happen. But the market is changing, and unfortunately, Steve is gone. A 7.85-inch iPad would sell well in my opinion, just by price alone.