"With the industry revving its engines for the third and fourth quarter, the iPad rumor mill has also begun to pick up with reports of a smaller 7-inch iPad," reports PC magazine. The screen-size of the current iPad is 9.7 inches.
According to the article, "One of the iPad’s chief criticisms is that it is not much more than a larger iPod touch, a criticism that has been dispelled by Apple’s most recent sales figures. A smaller iPad would most likely not dramatically improve the portability of the device, as it’s still larger than a pocket. But a 7-inch iPad would be on par with the Barnes & Noble Nook and slightly larger than the redesigned Amazon Kindle, which includes ts traditional 6-inch display but a smaller border."