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Rumor: Apple developing smaller iPad while Amazon works on a bigger kindle

Apple is working on a smaller version of its iPad tablet, cheaper than the current model, the New York Times reports citing several people with knowledge of the project, says Mashable. The new, smaller iPad will have a 7.85-inch screen diagonal and will cost “significantly less” than the “regular” iPad, which starts at $499. Meanwhile, Amazon is working on a bigger version of the 7-inch Kindle Fire in order to compete with the iPad, claims a developer briefed on Amazon’s plans. Steve Jobs has famously claimed that the iPad has just the perfect screen size, and Apple hasn’t even hinted at a smaller version of the tablet yet, so the “iPad mini” stays deep within rumor territory. We’ll find out the truth soon enough, though, as NYT’s sources claim Apple is slated to announce the new, smaller iPad sometime this year…

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