Peter Burrows and Adam Satariano, reporting for Bloomberg:
The new model will have a screen that’s 7 inches to 8 inches diagonally, less than the current 9.7-inch version, said the people, who asked not to be identified because Apple hasn’t made its plans public. The product, which Apple may announce by October, won’t have the high-definition screen featured on the iPad that was released in March, one of the people said.
There is a lot of smoke billowing around this idea, so much that I know an Apple 7” tablet must be coming. The consensus thus far is that it will have a 7.85”, 1024x768 screen, and it will run iPad apps.
As John Gruber points out, that screen makes sense because it will use nearly identical tooling to the iPhone 3GS, which by now Apple can do very affordably.
My question, though, is this: why would Apple release a brand new product without a Retina display, particularly when they could do it so easily? Why wouldn’t they use iPhone 4 panels cut to size and have a 7”, 2048x1536 display running Retina iPad apps? Apple has been manufacturing (or at least buying) that display for three years now. I would think they’re pretty affordable by now.