Smaller, Cheaper iPad Next Year?

According to fresh reports emanating from the Far East, Apple might launch a smaller version of the Apple iPad in 2011. The iPad has been a success with over 300,000 of them sold on the very first day. However, there are people who think a 10 inch tablet is too big to use.
For them, Apple might just announce a smaller version of the iPad. Digitimes, a Taiwanese website, quotes "upstream component sources" saying that Apple plans to launch a new iPad in the first quarter of 2011. This should have a 5 to 7 inch display.

The shrinkage in size also comes with a price drop. The smaller iPad, if it ever arrives, will be under $400. The cheapest version of the iPad available now costs $500. This is the 16GB model with Wi-Fi and no 3G.

The mini iPad, according to DigiTimes, "will target the highly-portable mobile device market and consumers that focus mainly on reading and do not have a high demand for text input". Not having a high-demand for text input doesn't make too much sense, but anyway.