There have been various rumors indicating that a mini iPad is in the works, and the rumor mill is incessantly churning. A new report has surfaced on Thursday, May 10, this time from iMore. Citing a previously reliable source, the outlet reports Apple will be releasing a 7-inch version of its popular iPad by October 2012, along with the next-generation iPhone. According to the report, the smaller version of the iPad would be cheaper, at the expense of less storage.

October 2012 Release

"Apple will be going forward with the 7-inch iPad, currently targeting an October 2012 release alongside the new iPhone, and - here's the killer - at a $200 to $250 price point," reported iMore. "According to our sources, the reason for such aggressive pricing is to do to the tablet market what Apple did to the MP3 market in 2004 with the expansion of the iPod product line - leave absolutely no space for competitors."

Furthermore, the report added that according to its sources, the mini iPad would be identical to the new iPad, complete with the 2048 x 1536 pixels resolution. This means the iPad mini would have a pixel density of roughly 326 pixels-per-inch (ppi), the same density found on the iPhone 4S. Apple would be able to price the mini tablet so competitively due to the reduced storage.

Less Storage

"Apple will be keeping costs lower by providing less storage capacity. $200 to $250 will get you 8GB," explains the iMore report. "By way of comparison, the current entry-level iPod touch also starts at $200 for 8GB. (And no, Apple won't be replacing the iPod touch with the 7-inch iPad, both devices will remain in the product lineup - though it'll be interesting to see what happens with iPod touch pricing and storage capacity.)"

There are two intriguing assertions in this report, which cites the usual unnamed sources. The first assertion, that the iPad mini will have only 8GB of storage, means the device will have half the storage capacity of the entry-level iPad. Apple has kept the same three storage configurations - 16GB, 32GB and 64GB - for the iPad since the first-generation model. The second claim, that the screen will have the same resolution as Apple's new iPad, is of particular interest. A 326 ppi density is a considerable jump from the 264 ppi display on the new iPad, and in line with what Apple currently offers on its iPod Touch and iPhone devices, but on a bigger display.

Big Resolution, Small Memory

On the other hand, this screen resolution may not go so well with the limited storage capacity. HD content and media-rich games would fill up the 8GB memory in an instant. Many 1080p movies on iTunes, for instance, go beyond 4GB. Add a 4GB movie to the other content you may have on the device, such as music, videos, pictures etc., and you may have a problem.

iMore's report is just the latest in a series of rumors suggesting that Apple would launch a smaller version of the iPad later this year. Another report from DigiTimes, a Taiwan-based news organization, said that Pegatron, a parts manufacturer for the iPad and iPhone 4S, has already received orders for the two products. DigiTimes, however, has often proved to be off. Another report last month, from the Chinese portal Netease, made the same claim. The difference between iMore's report and the two reports from DigiTimes and Netease is the price - iMore reported a $50 to $100 lower price tag.

(reported by Alexandra Burlacu, edited by Dave Clark)