A little bird has told us that the iPad 2, which is set to be released within weeks now, is going to have a little brother launched later this year, one which might turn up in a 7-inch form factor.
It also dovetails nicely with what http://daringfireball.net/ John Gruber wrote a few days ago about another iPad device being released towards the end of December and would complement the iPhone 5 Mini hearsay nicely.
So to recap, the iPad 2 will be released fairly soon (perhaps maybe today itself if Apple is really mean and manipulative), there will be a 7-inch iPad coming in September, one which will complement rather than replace the iPad 2.
We suspect that like the iPhone Mini and the iPhone 4, the 7-inch iPad will be a cheaper version of the current iPad, aimed at a wider audience.
Whether it will come with 3G, Wi-Fi, an AMOLED screen, an XGA resolution or only 16GB Flash memory, all this remains to be seen; only time will tell.