IPad Mini Rumors Heat Up

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Now that we apparently know the iPad 3, the iPad 3 rumor mill needs something to focus on, right? The latest target of Apple murmurs is the fabled "smaller iPad" - iPad Mini. We've been hearing about this device on-and-off since well before the Amazon Kindle Fire was announced, and today is no different.

Analyst Ezra Gottheil of Technology Business Research says that he believes that a seven-inch iPad - iPad Mini will be launching in the coming months, after iPad 3's release date. He adds that he believes that a iPad Mini "has always been the plan."

But Amazon may be cooking up more models of its own - including a nine-inch version of its Android slab aimed squarely at the 9.7-inch iPad 2. Analyst Ezra Gottheil of Technology Business Research believes that Apple will bring out the iPad Mini in the second half of this year.

The late Apple CEO and founder Steve Jobs was vehemently against seven-inch tablets - iPad Mini, saying that the small screen damaged the user experience, and predicting that seven-inch tablets would be 'dead on arrival'. But Gottheil goes on to say that the smaller form-factor is a great size for some users, and, though the tablet will fetch a premium compared to other seven-inch tablets (aka the Amazon Kindle Fire and Nook Tablet), Apple wants to "protect that price point."

Amazon's tablet has been a hit for the company, selling around six million units in the last quarter, according to analyst estimates. Demand for Amazon's tablet has been driven by its low price - $199. The entry-level iPad model is $499.

Any seven-inch iPad - iPad Mini would presumably be cheaper.