Kokatu translates a Chinese report on the often-rumored iPad mini tablet:

Chinese net portal, NetEase, has a story on a rumored new mini Apple tablet. NetEase claimed that the device will be released around the third quarter of this year to “counter attack” the upcoming Windows tablets. The report further claims that the devices will cost anywhere from US$249 to $299 and that there will be an initial 6 million units ready for launch.

The consensus is that Apple will use these to counter the mid-range tablet market that Amazon and others are now having some success in. The screen at 7.85 inches could hold the original iPad pixel dimensions and allow Apple to cut costs considerably.

The biggest argument against this type of product comes from Apple’s former Chief Executive Officer Steve Jobs, who asserted one would need super-small fingers to navigate smaller 7-inch tablets.