Prototypes of a new, smaller iPad have been delivered to Apple for verification and could enter production in the third quarter, a report has claimed.
Digitimes reports that Apple's manufacturing partners have delivered samples of a 7.85in iPad, according to anonymous industry sources.
In the most recent report, Digitimes claims that sources think that new, smaller device would go on sale for between $249 and $299 (£156 and £188) in order to compete with Amazon's $199 (£125) Kindle Fire. Production would begin in Q3 which would make sense if Apple anticipated another pre-Christmas battle with Amazon.
However, a separate report from the same outlet published this week suggests that Apple has another low-cost option coming - an 8GB iPad 2, which it will announce next week.
The 8GB iPad 2 model is expected to cost between $349 and $399 (£219 and £250), Digitimes believes.