Steve Jobs once said he didn’t think there was a market for a 7-inch tablet so Apple would’t be making one. But not even Steve Jobs’ crystal ball was infallible. The sub-$200 7-inch tablet appears to be catching on. The first hint came with the initial success of Amazon’s Kindle Fire. Now, Google’s 7-inch Nexus 7 tablet has become the hot new gadget. It’s getting rave reviews, even from some iPad lovers and is already reportedly sold out at several major retailers. Apple now appears ready to relent. According to the New York Times this morning, Apple is planning to introduce a 7.85-inch version of the iPad that will sell for “considerably less” than the $499 price of the latest 10-inch iPad.