With the iPod touch and the iPhone, Apple is stuck between the proper physical size of a phone (which the iPhone 4 was) and the proper physical size of a portable video player (arguably, where the iPad mini is). I think the obviously resolution to the problem is an iPad mini with a bluetooth headset. But Apple will need to do something special so they can sell it as something new and interesting. It's just not Apple's style to say "Here's the iPad mini you know and love, we threw in a cellular chip and a bluetooth headset, now go write glowing reviews, slaves!"
Source: http://news.yahoo.com/apple-reportedly-prepping-4-8-inch-iphone-june-135018032.html
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