Sterne Agee analyst Shaw Wu supports recent rumors of a smaller iPad.
At this point it is just a matter of time until Apple will release a cheaper and smaller iPad. Currently referenced as iPad mini, the smaller iPad is rumored to have a 7.85-inch screen and sell between $249 and $299. The iPad mini would have the resolution of the iPad 2. As mentioned in earlier reports the main benefit of the iPad mini is the low price. At $249 it would give the low priced Amazon Fire tablet and other low priced tablets a hard time.
Google is supposed to release a low priced Nexus Tablet. Apple could time the release of the iPad mini to counter the Google offering somewhen in the 2nd half of 2012. Another theory is that Apple could counter the Windows 8 tablets that are expected to explode on the market this fall with a cheap iPad mini.
Forbes reports today that Sterne Agee analyst Shaw Wu believes the recent rumors and says that Apple is working on alternative iPad screen sizes since 2009.