Rumors of a 7.85" iPad "mini" have been floating about for quite a while now. While the rumors are indeed persistent, there has been nothing concrete (i.e. leaked components) that would suggest that such a device exists. Either way the folks at Digitimes are now reporting that the upcoming 7.85" iPad mini will be utilizing thin-film touch technology, which not only would result in a slightly thinner iPad, but could help shave some costs off the device as well which could allow Apple to sell it for a lower and more affordable price.
Ubergizmo, 7.85″ iPad mini rumored to use thin-touch film displays
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