A picture of a Taiwan-based celebrity and car racer holding what appears to be a smaller version of the iPad has been published online and confounded Apple observers and news journalists alike.
Jimmy Lin can be seen here holding a small iPad in the right hand and the normal iPad model in the left hand, one with the Ferrari logo in the background.
He wrote on his http://t.sina.com.cn/dreamerjimmy blog that he was holding his "new toy, [the] iPad Mini". Many have pointed out the fact that it has the iOS 3.x wallpaper rather than the latest one; furthermore, it looks as if he is holding the device with his finger tips only.
The most likely theory though is that Lin managed to buy one of the many iPad clones available in China like the ones we previewed back in May 2010 here.
As much as we love the idea of a 7-inch iPad tablet, it is likely that Apple will ever launch such a model simply because Steve Jobs dismissed this form factor arguing that you'd need to sand paper your finger in order to use such a tablet.