Take this one with a grain of salt, but "DigiTimes" (http://www.digitimes.com/news/a20100407PD226.html) says Apple is reportedly scheduling a smaller 5- to 7-inch version of the iPad that is expected to launch as soon as the first quarter of 2011, according to research senior analyst Mingchi Kuo.

Kuo, citing talks with upstream component sources, said Apple's smaller-size iPad will be priced below US$400 and will target the highly-portable mobile device market and consumers that focus mainly on reading and do not have a high demand for text input. He may be right, but that seems counter-productive to me, giving the various uses of the iPad.