During this week’s The Talk Show podcast hosted by 5by5′s Dan Benjamin and John Gruber — of Daring Fireball fame — it was revealed that Apple has a 7.85-inch iPad in its labs. Gruber broke the news partway through the podcast, suggesting that Apple could release the smaller iPad at WWDC 2012, but that a public release is far from guaranteed.
Gruber goes on to say that he wouldn’t be surprised if the tablet ever ships, so don’t get too excited just yet. We do believe what Gruber is saying, however, since he has a good track record and is very connected with Apple. Moreover, the Wall Street Journal has also suggested that Apple is working on a smaller iPad, and Samsung Securities also mentioned the possibility of a 7″ to 8″ iPad by the holidays.