Isaac Newton’s favorite company is rumored to have big plans for something that involves a smaller version of the iPad. Apparently, the 7 inch iPad is expected in the first quarter of 2011, and should improve on its bigger and hopefully dumber brother.

The 7 inch iPad will supposedly have the Retina display, the same one used on iPhone 4 devices, and a mini or micro USB port. It should come with a camera and 128GB of storage.

Apparently, an upgraded original 9.7 inch iPad is set to arrive shortly after and should have better screen, camera and USB.

More here.