New rumors indicate that Apple may be working on a smaller version of iPad which may be introduced sometime early 2011. The size would somewhere between 5 to 7 inches, as reported by DigiTimes. The price will therefore come down to $400 or less. If this becomes true, Apple would impose even harder challenge to the currently existing eBook Readers like Amazon Kindle, B&N Nook and Sony eReader.

Moreover, analysts believe that the upcoming HP Slate will unlikely be a direct contender for the Apple iPad. This is because the Slate runs a (relatively) more power-hungry (Intel Atom) processor and therefore will have a much reduced battery life. [Having a long battery life is one of the key features for a good eBook reader].

[source: digitimes.com]