7-inch iPad could be a Kindle Fire competitor
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Well, the rumors of a 7 inch iPad have been going on for some time and now yet another rumor from Digitimes suggests that the smaller version of the iPad will feature a 7.85-inch screen with a slimmer bezel display to maximize the display area. The article from DigiTimes also states that the 7.85-inch iPad could be designed to take on the similar models from Amazon and Samsung in order to maintain Apple's leading position. Sources from upstream supply chains also predict that the smaller iPad may not feature the Retina display but will likely use an IPS panel from LG display or AU Optronics (AUO). It will probably be priced at around US$249-299.
While many analysts agree that there is a large market for 7-inch tablets and Apple could start making a 7-inch tablet as well, it is unlikely that they would release a 7-inch tablet anytime soon. Apple is already doing well in the 10-inch section and no other tablets are even close to its sales figures (the Kindle Fire notwithstanding). Hence, there is little reason for it to compete with any other manufacturers in the 7-inch tablet category, at least for now.