“What I do know is that they have one in the lab, a 7.85″ iPad that runs at 1024 x 768. And it’s just like the 9.7-inch iPad shrunk down a little bit. The apps wouldn’t need to be redesigned or recompiled to work on it — it’s just the iPad smaller.”
To clarify, he goes on to say that he’s heard from “numerous people that it’s one of the ideas that [Apple] is noodling with.” But he has no idea when, or if, Apple plans on shipping it.
Anyway the iPad mini still in the testing period and it is expected to be released somewhere in 3rd Quarter or 4th Quarter this year. Yet this in another plan from Apple to ship it for holiday season.