I dunno - a 7-inch tablet with the same 1024x768 resolution as the original iPad might be a smart move. All the apps developed for the original iPad would still work, and it would be a real competitor to Google's little one. Most likely it will have at least 3 capacities though, 8/16/32, in typical Apple fashion.
I am seriously thinking about getting a Nexus 7 for my 2-year-old, but a iPad Mini would be a much more compelling option.
Now if Apple could just figure out how to have both HD and non-HD versions of apps in the App Store, so that the HD versions don't completely fill up our non-HD devices, that would be great...
Why is speculation about possible future Apple devices always automatically "news". The source isn't connected to Apple or any of their suppliers and either is his information as far as I'm concerned. Also, wouldn't a 7.85 inch tablet more accurately be called an 8-inch? Anyway, until it's announced or exists, who cares. If it doesn't have an SD slot then it's no more appealing to me than the N7. And yet even the speculation prices it at $100 over it's closest competition. I'm sure the 8Gb capacity listed would only be one of several size options too.
This has been said over and over again, but I'll reiterate what I think: Apple is not intending to compete with the number of tablets sold. Or on price. Not at all.
Apple has the loyalist edge, an edge that is quite something. They can charge $400 for a tablet and people will pay. For instance, Apple is a somewhat distant second in terms of total phones sold - but they rake in 70% of the world's smartphone profits. To them, it isn't about numbers of units sold - its about numbers of profits made.
What are people really doing with these tablets? I find tablets to be the least useful computing device invented in the last 10 years, yet many think these can somehow replace desktops or notebooks?
They're terrible for typing on, and you can't use them in bed without giving yourself neck cramps because it's too heavy and bulky to hold over your head. If it comes with a keyboard, you have to set it up using a stand on a desk, because you can't hold up the tablet and type on the keyboard at the same time. So then you're using an inferior version of a notebook or desktop.
Sooner or later the newness is going to wear off, and people are going to wake up and realize that these devices are inferior at most everything they do. They're probably the best devices for watching movies on plane trips.