Apple Has a Smaller 7.85″ iPad in Its Labs
When asked by Benjamin if he thought a 7.85″ iPad would ever be released, Gruber responded (at ~1hr 19min):
“Well, I don’t know. What I do know is that they have one in the lab…a 7.85 inch iPad that runs at 1024×768… it’s just like the 9.7″ iPad shrunk down a little bit. Apps wouldn’t need to be recompiled or redesigned to work optimally on it. It’s just the iPad smaller.