Apple Prepping Smaller iPad with Facetime for Early 2011 (Rumor)

Reports are coming in that Apple will release a second iPad in early 2011 that will be smaller and come with both a front and rear facing camera.

The rumor of a new 7″ iPad comes as various competitors launch smaller tablets like the Dell Streak and the Samsung Galaxy Tab which are more portable. The addition of cameras for video chatting is also likely a move to bring Apple ‘s tablet up to speed with the rest of the iDevice lineup that can now use FaceTime and to stay in keeping with competitors who continue to include video chat as a standard function of smartphones and tablets.

If the rumor is true, expect to see a smaller iPad announced in the March time frame, just a little under a year since the introduction of the first iPad.

This rumor joins the ever-growing rumor of a Verizon iPhone and comes as the original iPad moves onto store shelves across the country; and has been blamed for cutting into the sales of netbooks and notebooks.