Could spell bad news for the Kindle Fire. If it proves to be true, of course.
Not content with revealing Apple is making moves to develop theiPad 3 for a Q1 2012 release, Digtimes now says that the firm is developing a small-screened iPad.
The report says 70 per cent of the 60m tablet shipments this year will be iPads and quotes supply chain sources that claim Apple has decided to develop 7.85-inch iPads, in order to give it the edge over the likes of the seven-inch Kindle Fire, which is already rumoured to be the number two tablet to the 9.7-inch iPad 2.
The panels will reportedly be bought from LG Display and AU Optronics (AUO) and the sources say production is expected to start in Q2 2012.
Furthermore, the 7.85-inch iPad is expected to be released towards the end of 2012 in the fourth quarter. A strategy that Amazon adopted for the Fire, which has received a huge response from press and consumers alike.
It might all be smoke and mirrors, however. Apple has a habit of misdirecting the market and it's certainly true that after many years of rumours about a small screen 'Nano' iPhone, for example, no such device seems anywhere close to a release.