Former Apple CEO Steve Jobs denied that a 7-inch iPad would happen, describing the current 10-inch form factor as ideal. However, leaked e-mails (that surfaced during the ongoing Samsung-Apple trial) revealed that executives at Apple thought differently and were in favor of a 7-inch tablet.

An e-mail between Apple's Eddy Cue, Tim Cook, Scott Forstall, and Phil Schiller hints towards the possibility.

"I believe there will be a 7" market and we should do one. I expressed this to Steve [Jobs] several times since Thanksgiving and he seemed very receptive the last time. I found email, books, facebook and video very compelling on a 7"," Cue said in the 2011 e-mail. Just a year after launching the iPad, and basically the credible device, Apple seemed to be looking at expanding.

Cue cited a GigaOM article describing the case for the Galaxy Tab over the iPad, noting the former as preferable. The 7-inch display is the main reason.

Samsung used the e-mail in the court case to argue that Apple copies competitors' ideas. Apple accused Samsung of copying the iPad's design with its Galaxy Tab.

Rumors have surfaced throughout 2012 suggesting Apple is going to release a 7-inch tablet. The most recent claim is Apple will launch the device in September, alongside its next iPhone. It's not known how Apple will position the device in terms of price or non-display specifications, but it's likely to be a budget iPad. Google's 7-inch Galaxy Nexus 7 tablet is just $199.

How Apple will adapt the Retina display, its high resolution technology used in the iPhone 4/4S, new iPad, and latest Macbook Pros, for the iPad Mini is also questionable. Cost cutting may mean Apple opts for a resolution similar to the iPad 2, with the condensed form factor resulting in a higher overall resolution.

An "iPad Mini" could be a device to restore Apple's position as the dominant tablet provider, in the wake of competitors like Google. There's a definite market for a 7-inch form factor and Apple's presence among mainstream consumers is sure to fuel sales.