The world of Applerumors is never ending. One thing that I have seen happen on more than one occasion with rumors citing sources named or not with Apple is that often Apple forces the site to pull stories. One way of looking at that is that the rumors Apple takes time to force down are close to truth. A website in Korea called The Korea Times ran a story recently claimed that sources said Apple was working on a 7.35-inch iPad and a 4-inch iPhone.
Shortly after publication the story was pulled, but not before it was picked up elsewhere. The thinking is that Apple forced the site to pull the original story. According to that original story, sources told it that Apple was set for talks soon with LG to get screens for the 4-inch iPhone and a 7.35-inch iPad.
These two products have been rumored on and off for years now. It would be no surprise to see the larger iPhone and smaller iPad come to be. I think Apple needs these products to continue to grow. The iPhone 4Sscreen is small by today's standards and many tablet shoppers are buying 7-inch units.
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