In a note to investors today, Sterne Agee analyst Shaw Wu said that it was a "question of when, not if" Apple would release the rumored 7.85-inch iPad. He believes it would make strategic sense for it to expand its tablet family.
"A smaller iPad would be the competition's worst nightmare," he explained. Apple's competitors are already having trouble beating the company on price at $399 and $499. They wouldn't stand a chance against a $299 tablet...