Apple rumor website iMore is reporting that Apple will launch the much rumored iPad mini in October along with the new iPhone. Some of the details that iMore posted about the upcoming iPad mini are very interesting, Rene Ritchie wrote:

Apple will be going forward with the 7-inch iPad, currently targeting an October 2012 release alongside the new iPhone, and -- here's the killer -- at a $200 to $250 price point. According to our source, which has proven reliable in the past, the reason for such aggressive pricing is to do to the tablet market what Apple did to the MP3 market in 2004 with the expansion of the iPod product line -- leave absolutely no space for competitors.

We haven't gotten a firm read on the exact screen dimensions, so we're using 7-inches generically here. Our source has indicated, however, that the 7-inch iPad will be identical in every way to the current 9.7-inch iPad, just scaled down. That seems to include a 2048x1536 resolution display, just like the new iPad. If accurate, that would put the pixel density at around 326 ppi, identical to the iPhone 4S (and higher than the 264 ppi new iPad) retina display. It's hard to imagine a device with a panel like that having a price tag of just $200, especially when the baseline new iPad comes in at $500, but one way Apple will be keeping costs lower is by providing less storage capacity. $200 will get you 8GB. That's identical to the current entry-level iPod touch, which also starts at $200. (And no, Apple won't be replacing the iPod touch with the 7-inch iPad, both devices will remain in the product lineup -- though it'll be interesting to see what happens with iPod touch pricing and storage capacity.)

From what we have heard via our sources Apple isn’t going to use a Retina display on the iPad mini. The cost of production of 7-inch Retina display alone will be more than 1/3 the price of iPad mini. Also price difference between 8GB memory module and 16GB module is less than $5, which won’t make up for higher cost of Retina display (about $60-$70). So we believe that the assumption about Apple keeping the cost lower by using less storage is baseless.