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As it stands the iPad "mini" doesn’t exist. But the AllThingsD quotes sources stating Apple is to hold an event on October 23rd to unveil its latest unicorn.

Every man and his dog seems to concur that this new 7.85-inch tablet will have the same guts as and iPad 2, only wrapped in a slightly smaller package. The one thing no one seems to agree on is how much Apple should price its potential king of 7ish-inch tablets. So I thought I’d have my tuppence worth.

I think the iPad mini will start at $249. Sure this would make it $50 cheaper than the entry level 5th generation iPod touch. It’ll also make it $50 more than the best 7-inch Android tablet, the Nexus 7. But that’s ok, and here’s why.

As I said earlier the word on the street is that the new iPad mini will have the same specs as the iPad 2. I think I’ll go one step further and say that the iPad mini will also have the same camera as the iPhone 4 and 5th gen iPod touch.

This would mean the core specs of the mini would be:

Storage: 16GB, 32GB, 64GB

16GB, 32GB, 64GB Display: 7.85-inch (1024 x 768 pixels) LCD

7.85-inch (1024 x 768 pixels) LCD SOC: Apple A5

Apple A5 Connectivity: WiFi 802.11a/b/g/n, Bluetooth 4.0

WiFi 802.11a/b/g/n, Bluetooth 4.0 Cameras: Rear facing: 5MP iSight, Front facing: HD FaceTime

With specs like these the entry-level iPad mini would be practically identical to the new iPod touch, but with only half the storage of its little sibling and with an inferior display. Taking this into account one could argue $199 would be a better base model price point. But I just don’t see Apple dropping that low.

As for pricing this new device higher than an equivalent capacity Nexus 7, well for one thing Google has admitted they are selling the N7 at cost price and we all know Apple’s in the business of making huge margins on all of their products.

Secondly, fit and finish. Don’t get me wrong the N7 is a decently built device, but if you’ve held a new iPod touch and/or iPhone 5, then you’ve felt how insanely methodical Apple is when it comes to build quality.

These one more thing: rear facing camera; The N7 doesn’t have shooter on it’s back, but I think the iPad mini, like all of other current generation iOS devices will. Sure, you look like a douche taking pictures with a tablet, but maybe you’ll look a little less douchey taking them on a slightly smaller slate.

So there you have it: $249 for a 16GB 7.85-inch iPad mini. Perfect right? Here’s what I think the fall iPad mini line-up will look like:

iPad mini 16GB 32GB 64GB WiFi $249 $349 $449 WiFi + 4G LTE $379 $479 $579

What do you guys think?

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