Digitimes Research senior analyst Mingchi Kuo has discloed that the Apple folks are planning to build a mini version of  iPad that would have a smaller screen size falling in anywhere between 5 to 7 inch. The analyst got this information thanks to an interesting conversation with the component providers.The smaller version of iPad is expected to hit the market in Q1 of 2011 with price tag expected to be less than $400. Main audience of this device will be the folks who tend to use be more into reading activities rather than writing.  This news is yet to get the official status, so you can pretty safely regard it as a rumor. However the question that arises here is do we really need a smaller iPad?

iLounge reports about the potential of a new mini iPad coming:

• They think that new 1.7 inch screen is coming to the iPod Shuffle
• New iPods coming at some point between Tuesday and September (shocker – there wil be an event in September like the last 5 years).
• The big deal is that there will be a 7-inch iPad released at that point.  We’ve also heard this and can add that there will be a much higher density screen which will be labeled ”Retina Display” and have something like an insane 1500×1920 type pixel display (think four iPhone 4 screens). We’re hearing front facing camera on this one too.
• They say the new iPhone 5 has been pushed up to a January release – seems sketchy however.
• Something about bumpers being updated or something.

iLounge has a pretty good record on these types of leaks. It seems like the gap between the iPad and iPhone is getting smaller and smaller