updated 02:40 pm EDT, Thu May 10, 2012
Low cost would be matched with low storage
Apple is aiming for an October release date for its frequently-rumored 7-inch iPad, an iMore source says. More specifically, though, the person says that the tablet will be virtually identical to the current 9.7-inch iPad, including even a 2048x1536 display. That would give it the same 326ppi pixel density as the iPhone 4S, and more than the current iPad's 264ppi. Pricing is expected to be just $200-250, despite regular iPads starting at $499.
The explanation is that Apple will allegedly cut back on storage, equipping the $200 model with only 8GB. The iPod touch is expected to remain on the market, but if so it's unknown how Apple will handle pricing, since an 8GB Touch is already $199. Apple could conceivably bump up the minimum storage on a Touch to at least 16GB, if not 32GB.
An October ship date would likely see a 7-inch iPad arrive alongside a new iPhone. While Apple co-founder Steve Jobs famously argued against 7-inch tablets, the company may no longer have much choice, given competition from Amazon's $199 Kindle Fire, and Barnes & Noble's similarly-priced Nook Tablet.