[JunkDNA]

One thing missing in all these write-ups is what the "killer feature" will be. If you look at new products in an existing product line from Apple, they almost always have something unique that differentiates them, even if it's something minor. For example, they didn't just make the iPod mini smaller, they offered it in different colors. The iPhone 4S wasn't just a faster iPhone 4, it had Siri. I would be very surprised if a 7" iPad came out and didn't have some flourish, some differentiator that made it stand out in some way from the regular iPad and things like the kindle fire. Perhaps they make it absurdly thin? Or perhaps the display is a new display that works great in direct sunlight (you are going to read books on the thing)? If this thing is real, there is going to be some unique take on it. Price and size aren't enough of a sell on their own.

[lunarscape]

Since we're throwing around ideas, how about a haptic touch screen? Maybe something like what Senseg offers [1][2].

[1] http://senseg.com/technology/senseg-technology [2] http://tech-reviews.co.uk/news/apple-ipad-3-could-feature-ha...

[JunkDNA]

I have been waiting for the haptic stuff. I think it's almost certain they will go there (in fact, it's likely the perfect antidote to the MS Surface keyboard).

Unfortunately, I think you need to think about this from a manufacturing standpoint. They are unlikely to put a new tech like that in a product that needs to be price competitive at the lower end of their product line. They need things that have been clearly demonstrated to be easily mass produced in sufficient quantity. Therefore, I think it's more likely to be something "safe" like a new physical design, software they completely control, colors, or perhaps a new display that someone else is already using in larger quantities.

They have actually been fairly predictable with this stuff in the past: iPhone serves as the testbed for new tech. The small form factor means you need less of the really expensive materials and the US carrier subsidy prevents the initial price from being eye-popping. Once they get the manufacturing kinks worked out and the volume up, the tech can trickle down (over? up?) to the iPad and Mac lines.

[ricardobeat]

It's already rumored to be as thin as an iPod touch, which would feel paper-thin compared to anything else.