What he probably means by that is that he doesn’t want any further fragmentation. A 7" tablet would need an optimized UI for the reduced screen size (you can’t

What he probably means by that is that he doesn’t want any further fragmentation. A 7" tablet would need an optimized UI for the reduced screen size (you can’t just shrink down iPad apps or blow up iPhone apps), Apple doesn’t want that. There won’t be a 7" tablet anytime soon (within the next twelve months) and that whole September business is based on pure speculation, not any sources or evidence.