Our pals over at iLounge have gotten a few iPad-related tibdits from one of their sources, and we thought it was interesting enough to pass on. They are hearing that, in conjunction with the regular September ipod event that Apple conducts each year, that the company may announce a smaller version of the iPad. They say it’ll have a 7-inch display, making the screen closer to that of the Amazon Kindle (Amazon released a new Kindle last week.) We’ve also been hearing that a smaller iPad was on the horizon, but we didn’t hear anything about a date. Other sources are claiming that the next iPad will definitely ship with a front-facing camera as well, turning them into Facetime devices (the next iPod touch will likely include similar functionality.) Even if it doesn’t happen in September, we fully expect to see a smaller iPad by January.

If Apple wants Facetime to catch on, they definitely need to get it into more devices than just theiPhone 4, and this would be a good way to accomplish that. A smaller iPad with increased functionality launching so soon after the original could result in buyers remorse for some, but it’s not like Apple hasn’t made similar moves in the past, especially with the iPod a few years ago.