There are rumours circulating that suggest that the ipad mini is coming in the 3rd quarter. This news comes from a reliable Chinese source.  

The ipad mini will have a smaller screen probably measuring around 6 to 7 inches and the internal memory will be smaller than the tradition apple ipad sold. It will sell at a much lower price probably around the 200$ mark , so it is able to compete directly with Amazons Kindle fire. But the deceased Steve jobs was said to be not keen on a smaller screen screen size.