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PC World posted a news story that according to the latest rumors, Apple is upgrading its 9.7-inch iPad with a faster ARM processor and is releasing a smaller 7-inch iPad in 2011



Digitimes reports that Apple is set to launch "an upgraded 9.7-inch iPad adopting a new ARM Cortex-A9-based processor and 512MB RAM in the first quarter of 2011." Apple is also prepping "a 7-inch iPad using the Cortex-A9 processor and an IPS panel with a resolution of 1024×768."
  Rumor: Apple Upgrading iPad, Releasing 7-inch Model in 2011