Apple has a "dead on arrival" tablet sitting in its labs

Apple is testing a tablet which Steve Jobs once said was “dead on arrival” and would only be made over his dead body.

Jobs once said that anything under 9.7 inches was not worth considering, but it seems that Apple is now working on a smaller version of the iPad in its Cupertino labs. We guess they think that Jobs must have been talking about something else.

Daring Fireball‘s John Gruber claimed that he’s heard details of a 7.85-inch prototype that runs at the same 1024 x 768 resolution as the iPad 1 and 2.

While that would not be as clear as the new iPad, the 163 pixels per inch would still be better than the original iPad without apps needing to be rewritten or updated.

Gruber says that the device is about as tall as the 9.7-inch iPads are narrow when held in portrait orientation.

Most people think that Apple still would not dare go against the word of Jobs and must have just built it as one of the multiple prototypes of products for testing, before deciding whether or not they will ever see the light of day.

Gruber generally knows what goes on in Apple, but the screen size has been written in stone in Apple law. For Steve did say that 9.7-inches was the size for tablets and 3.5-inches was the size for phones and it has been so ever since.

Jobs once said that 7-inch tablets would need to come with sandpaper so that users could file their fingers down to use them.