Refreshed internals, lower price point possible.
Apple's 'iPad Mini' Media Event Planned for October
Apple’s next generation iPhone and its so-called “iPad mini” will debut at two separate events this fall, rather than a single one as has been widely speculated, according to several sources. [...]
Only after the next generation iPhone is out the door and on sale will Apple announce the smaller iPad it’s been working on. That device, which is expected to have a display of less than eight inches, will be uncrated at a second special event, which sources said is currently scheduled for October.
Mockup of 7.85-inch "iPad mini" next to an iPhone (courtesy of CiccareseDesign)
AllThingsD has a reliable track record when it comes to leaking Apple media event plans, and when paired with Dalrymple's past history it seems likely that Apple will indeed be holding two separate events in the coming months to introduce the next-generation iPhone and the company's smaller iPad.