There has been a great clamor from consumers for Apple to release an iPad mini or a 7-inch tablet but just like Steve Jobs' said in a statement, small iPad will not be added in their product line in the near future. However, we may see a cheaper iPad 2 next year.

Contrary to rumors going around, Apple will not release a smaller iPad. There are various reasons on why this will happen. However, one of the reasons is former Apple owner Steve Jobs' statement towards the miniature device. "One naturally thinks that a 7-inch screen would offer 70 per cent of the benefits of a 10-inch screen," Jobs said during a 2010 earnings call. "Unfortunately, this is far from the truth. ... The reason we [won't] make a 7-inch tablet isn't because we don't want to hit [a lower] price point, it's because we think the screen is too small to express the software. As a software driven company, we think about the software strategies first."

There are rumors that Apple is testing the device but the company will not be releasing its version next year. Part of the appeal of a smaller tablet is the price point. Smaller tablets are usually priced in the mid-level price range, below $400. Blair thinks Apple will use a different strategy to hit that tier:

"We believe Apple is highly likely to keep the iPad 2 on the production line after the launch of iPad 3 and offer it at a lower price point in an effort to address demand at the mid-tier, what we view as the $249 to $499 range. We believe iPad 2′s price could drop to the $349 to $399 range with Apple offering a single 16GB model."

It is expected that the price of the iPad 2 will be lower since a next generation of tablet is expected to be introduced next year. According to the Taiwanese news agency DigiTimes, tech giant Apple, Inc. will be releasing its much-awaited next generation of iPad in the next three to four months.

DigiTimes reported that their sources from the Apple's supply chain said that the production for the iPad 3 ramped up and the production of current generation of iPad decreased. Specifically, the source of the news agency confirmed that OEM production of the iPad 2 will remain high, producing 14 to 15 million units by the fourth quarter of 2011 but will drastically decline to 4 to 5 million units on the first quarter of 2012 to pave the way for the new iPad.