Apple is expected to launch a 7-inch “iPad mini” alongside their next iPhone in October. The new tablet will be priced at a $200 to $250 price point, leaving “absolutely no space for competitors,” according to iMore.com.

According to the report, Apple’s newest tablet will be identical to the new iPad model, except on a smaller scale. The iPad mini will include a 2048 x 1536 resolution and a pixel density at around 326 ppi, which is identical to the pixel density on the iPhone 4S. In addition, in order to launch the new iDevice at a low price point, Apple will likely limit its storage capacity to 8GB.

We’re heard many iPad mini rumors in recent months. In March, we suggested the would-be tablet made a lot of sense. In addition, the Daring Fireball’s Jon Gruber confirmed that Apple was working on the iDevice in-house. With news that interest for Amazon’s Kindle Fire is ebbing, now could be the perfect time for Apple to release a smaller iPad. Besides, with their rumored iTV on the back burner, what else would Apple be working on?

Just think: A new iPhone and an iPad mini this fall!

Do you think Apple will pull the trigger and release a iPad mini? Would you buy the iDevice?

(Photo: iPad mini concept by iMore.com)