Rumors about the iPad Mini have been all over the map. Speculation abounds about how big it will be, when it will launch, and even whether it exists at all. While a seemingly reliable report early last month seemed to confirm that a 7.85-inch iPad Mini does exist, there were doubts as to whether it would ever actually see a release. Rumors that try to pin down a release date have been pretty erratic, as well. Some keep it to the third quarter in general, while a recent report said it would be coming in August.

Well, a report from iMore today claims to put all those rumors to rest (though, of course, it actually just adds fuel to the fire). Citing a source that “has proven reliable in the past,” iMore says that the iPad Mini will effectively be a shrunken version of the iPad 2, but with the same pixel dimensions as the new iPad. With that display, the iPad Mini will have the same pixel density as the iPhone 4S’s retina display, putting it somewhere between the iPhone 4S and the new iPad in terms of resolution.

Perhaps most shockingly, iMore’s sore claims that the iPad Mini will start in the $200-250 range, which is $50-100 lower than most estimates. The source claims that Apple will keep costs down primarily by offering less storage capacity – the $200 model will only have 8GB of onboard storage.

Finally, the source claims that the iPad Mini will be coming in October of this year. Coincidentally (or maybe not?) that is the likely timeframe for the release of the next iPhone. It seems unlikely that Apple would unveil a major new product alongside the newest iPhone, though. So if the October date is correct, then it may lend credence to recent reports that the next iPhone will actually be arriving a little earlier.

What do you think? Will Apple make a 7- or 7.85-inch iPad Mini? Would you buy one if they did? Let us know in the comments.