Buzz has it that Apple (AAPL) is busy decorating the California Theatre in San Jose, Calif., for the highly anticipated iPad mini event tomorrow that is likely to commence at 10:00 a.m. Pacific/ 1:00 p.m. Eastern Time.

The main aspect of the news here as Mercury News has pointed out is that Apple last used the venue to introduce its first batch of iPods back in 2004 and 2005.

The choice of venue is marked shift from typical locations such as Yerba Buena Center in San Francisco or Apple's own Town Hall.

The special event is likely to witness the unveiling of 7.85-inch iPad with A5 dual-core processor built using 32nm process accessing 512MB RAM.

Though invites sent out last week with tagline:  “We’ve got a little more to show you,” did not hint at what will be revealed, the event is eagerly tracked for unveiling of smaller, cheaper version of the tablet that is also likely to see the launch of 13-inch Retina MacBook Pro and a new iMac and Mac Mini models.

The event that is scheduled just three days prior to Microsoft's launch of Windows 8 and Surface tablets puts the focus back on Apple and the Redmond giant, which recently announced that it has transformed into a devices and services company.

iPad Mini To Be Available In 24 Different Configurations

Rumor also has it that Apple Stores will offer 24 different configurations of the new device. Apparently the models will be introduced in Wi-Fi only, 3G and 4G LTE capability configurations.

Apple To Discontinue iPad 2?

Another rumor that seems to be gaining traction ahead of Tuesday's event is that Apple is likely to drop iPad 2 from product portfolio to make room for smaller iPad.

First reported in AppleInsider, Rob Cihra an analyst with Evercore Partners wrote to investors this week stating that small-screen iPad presented an opportunity to streamline lineup to "clearer product tiers." He also added that Apple may sell 7 million units of iPad mini by the end of 2012.