A smaller iPad has been rumored to be arriving for over a year now, aimed to compete with 7-inch tablets like the Kindle Fire. Now, on the heels of the announcement of the Nexus 7 and Surface tablets, both Bloomberg and The Wall Street Journal are reporting that sources are indicating that Apple is set to start production on a 7.8-inch iPad with the goal of launching it this October. Unlike the 2012 iPad model, this smaller slate won't be sporting a Retina display as Apple will instead opt for a 1024 x 768 panel to keep costs down. We know, it's another iPad rumor. The difference here, though, is that when you see major outlets like WSJ and Bloomberg reporting it, it's with great confidence. October should also see the debut of the next-generation iPhone as well.