According to iMore, Apple will release a new 7-inch iPad mini in October of 2012 and will price it around $200 to $250. The reasoning behind the pricing strategy is to mirror Apple’s entry and eventual domination of the MP3 player market. A low-cost iPad would do just that and likely put a stranglehold on products like the Amazon Kindle Fire. If you could define the niche occupied by the Fire, one would argue it’s price.
The source also suggests the 7-inch iPad will remain identical to the current 9.7-inch model, but simply a scaled down version. It would include a retina display with 2048 x 1536 resolution.
iMore has had a fair track record when it comes to rumors. If their sources are correct about this being a 7-inch iPad, it would conflict with previous rumors which have the iPad mini pegged at 7.85-inches. The Wall Street Journal reported in February that Apple was testing an 8-inch version of the iPad 3. Daring Fireball’s John Gruber has also confirmed a smaller 7.85 inch iPad exists in Apple labs.
If any Apple iPad priced at sub $250 might be the deathblow desired to start and finish the tablet wars.