The Wall Street Journal and Bloomberg had suggested earlier this month that Apple is planning on launching a smaller iPad. Now, The New York Times is also reporting that they plan to launch a cheaper 7.85 inch tablet later this year.
The Times suggests that Apple's new tablet would feature a smaller, 7.85-inch screen, and it would cost significantly less than the latest iPad, according to the "people with knowledge of the matter" line. Apple would likely announce the device before the end of 2012.
In contrast to going small, the NYT article also reports that "a developer briefed on Amazon's plans" has told it that Bezos and co are planning to launch a larger Kindle Fire.