We are seeing a new pattern in Apple leaks. In the past, Bloomberg and the Wall Street Journal would publish reports only weeks in advance of devices coming out. Now they are doing it 3 months in advance. In the past, you had to diligently read MacRumors and 9to5Mac to know a new product was coming soon.
But now we are seeing Bloomberg and the WSJ reporting much earlier on Apple devices. Such as a new 7-8" iPad coming in September or October. The reason this is important is because both have very good track records predicting Apple moves. Much better than any other publications. I consider Bloomberg to be around 90% accurate, and the WSJ to be about 98% accurate.
Effectively, anything they they report on a new Apple product is true.
On July 3rd, Bloomberg reported that Apple "plans to debut a smaller, cheaper iPad by year-end." They cited two people with knowledge of the plans.
Then, two days later, WSJ reported that "component suppliers in Asia are preparing for mass production in September of a tablet computer with a smaller screen than the iPad." They also cited two people when saying the screen will be less that 8 inches.
In terms of Apple rumors, we couldn't ask for anything more. These are the two most credible sources. This offers us the most possible certainty in saying that there is indeed a 7.85" iPad coming in September or October.