What if the smaller iPad...

Apple would never sell a "budget" device. I don't think they'll release one, but if they did it would be premium.

 

Apps made for the current iPhone will look silly on a 7.85 inch screen. Even on a 7 inch screen, mobile apps and websites often look too barren and the 7.85 inch iPod will be significantly wider than 7 inch screen, making things look even worse.

I think The biggest strength of this iPad Mini will be the availability of currently existing apps optimized for tablets. I would love to have the iPad apps on a more portable device - in fact it might even make many want to ditch smartphone, who knows.

 

To bridge the gap between smartphone and a laptop, there's an iPad. And now Apple have to fill the gap between smartphone and iPad (tablet)?

What next? The gap between tablet and laptop?

 

Doesn't sound very practical to me, how am I supposed to fit an iPad in my pocket?

You are probably right in saying that it will be similar to the iPod touch, but it will not eliminate it. The touch was made to bring iPhone technology to a wider audience, apple was just trying to get the very most out of its massive development costs creating the iPhone. I assume they will now try and cushion their iPad development costs by selling the smaller, cheaper iPad to a less wealthy demographic.

Quite a few people say they would trade their full sized iPad for a smaller one, but I would bet you will change your mind. If apple truly wants to compete in the cheap-tablet market, they are going to have to make it cheap in both senses of the word. Low quality and low price. The iPad mini isn't meant to be anything other than a profit hound (exactly like the iPod touch, it isn't just an iPhone without a 3G radio, there is one heck of a lot more that was downgraded to maximize profit), so if you are expecting a resized full-iPad quality device at a fraction of the price, you will only be disappointed.

 

The iPad is already a bigger iPod Touch.

 

already there

Microsoft Surface.

 

Hehe. Sounded cool at first but I would rather spend $1000 on a laptop than a tablet.

 

I would only agree (for what it is worth) once the Nano get BT. Right now the iPod Touch is a nice music box in my backpack driving my BT headset.
now a iPod Nano doing the same with 32 GB storage would be awesome. Battery life I don't know.
in that case iPod Touch get reincarnated as iPad Mini

 

Ridiculous. They don't even run the same apps. That alone is a huge difference.

I don't see Apple ever eliminating the current iPod Touch form factor, it's simply too successful for them.

 

Maybe for you and your "10" year old daughter. For me it makes a GREAT phone on WIFI networks.

 

There's simply no sense of getting rid of a pocketable mini computer that is iPod Touch and replace it with a non-pocketable device that runs blown-up phone apps. The iPhone interface on the 7.xx" display will look like crap. If the rumors are true, the device will be around 7.85", which is much closer to iPad's screen size than iPhone screen size. Thus, the tablet interface will be much more fitting for it.

Also, there's no reason why Apple shouldn't be able to make the "iPad Mini" and sell it at $250. They will likely use economies of scale to their advantage to lower manufacturing costs drastically (e.g. the display process will likely be the same as in the 3GS, making it super cheap); there would also be less materials, smaller battery, less NAND storage, etc..