A new rumor about the much-anticipated iPad Mini is going around the blogosphere. The latest addition to iPad Mini rumor mill indicates that Apple is gearing up for a smaller version of iPad, which may hit market in October this year with a price tag of $200-$250.

Citing unnamed sources, iMore claims that Apple is working on a scaled down version of iPad. Apple iPad Mini will feature a display resolution of 2048 X 1536 pixels which is same as new iPad, but on smaller screen panel. Folks at iMore do not know the exact dimension of iPad Mini's display, but it will be on par with the 326 ppi Retina display of iPhone 4S.

To keep the costs low, the Cupertino tech giant will offer lesser storage than company's existing tablets. Apple iPad Mini will come in only one version with 8GB of storage, while the current entry-level iPad models offer 16GB of storage. iMore further claims that iPad Mini will be priced between $200 and $250, which is considerably lower than previous reports. However, don't expect 4G LTE connectivity at this price.

If the report is to be believed, iPad Mini may turn out to be a business-killer for rival tablet manufacturers like Amazon and Barnes & Noble that offer low-cost tablets. It could also affect the 10-inch tablet market.

Surprisingly, these rumors landed online just one day after Digitimes reported that the 7-inch iPad will be released in August. DigiTimes has a kind of hit-or-miss record when it comes to Apple products.

However, iMore actually has a solid spot-on record. The site has reported accurately about unannounced Apple products in the past. And probability is high that this report could be something bigger than just a rumor.

(reported by Johnny Wills, edited by Dave Clark)