Apple producing 5-7 inch, $400 mini-iPad for 2011?

Apple iPad 7-inch Model in 2011

Digitimes quotes its own research arm in discovering that Apple is building a 5-7 inch mini iPad for delivery as early as the the first quarter of 2011. The analyst states that the price of the new product would come in around $400. The move would be more direct competition to Dell's Mini 5-sized application and would also be more of competitor size and price-wise to the Kindle.

The post also mentions that the HP Slate is due this summer and will be manufactured by Inventec. They don't give it much of a chance to take on the iPad because Intel's processors running Microsoft Windows 7 will run much hotter and drain the battery much quicker than Apple's choice of ARM/iPX OS.