Apple is indeed working on a 7.85-inch model of the iPad, using IGZO (indium gallium zinc oxide) panels made by Sharp, according to anonymous industry sources. While both claims have been made before, rumors about a smaller iPad have largely quieted in recent weeks. IGZO allows for better images from a thinner screen, with pixel densities potentially extending up to 330ppi, which could put a mini iPad into Retina territory.