iMore has reported that Apple is targeting an October launch for a smaller iPad. It is believe that the screen is around 7 inches and going to be priced around $200 – $250 range.

According to our source, which has proven reliable in the past, the reason for such aggressive pricing is to do to the tablet market what Apple did to the MP3 market in 2004 with the expansion of the iPod product line — leave absolutely no space for competitors.

The report says that it is going to be identical in design to the normal 9 inch Tablet. Also it is believed it is going to have the retina display.

These rumours have been going around ever since the original iPad came out and it hasn’t happen yet. Although with a price around $200 it is going to be priced around the same price as an iPod touch. We will just have to wait to October to see what happens. It is also believed that the iPhone 5 will be released  around that time too.