Apple Insider the new iPad would be targeted at cost-conscious consumers seeking a less pricey tablet, something akin to the new , Amazon's $200 color slate that's (even though it doesn't start shipping until next month).

The current iPad 2 starts at $500 but offers more goodies than the Kindle Fire, including a larger 9.7-inch display (vs. the Fire's 7-inch), front and rear cameras (the Fire lacks a camera), and a mega-selection of apps ().

Fiery Competitor

So what's it cost? In a note to investors, White writes: "We believe this lower priced iPad could be priced in the mid-to-high-$200 range."

If Apple does launch a 7-inch iPad, the lower-end tablet would compete directly with two popular, similarly-priced color slates: the Kindle Fire and Barnes & Noble's $250 Nook Color, which is rumored to be sometime this month.