iPad’s debuted to no competition, and obviously has dominated the 10 inch tablet market. This hasn’t stopped Dell from trying to Streak into the iPad’s sales with smaller 5 and 7 inch tablets.
According to iLounge, Apple might be looking to compete with the burgeoning 7-inch tablet market with an iPad Mini of their very own.
The iPad is pretty large and sometimes seems too large to make a trip to the bar. The 7 inch miniME iPad would still be quite useful and be more manuervable. The shrunken iPad is nearly complete and will be prepped for an announcement late this year. Apple has been prototyping devices with screens of this size for a long time, quite possibly before the original iPhone.
"Retina Display" mini iPad could have something like 1500x1920 resolution or iPhone 4 screens X 4. Front and rear facing cameras would be another likely feature!