Apple's new iPad. Photo: AFP/ Yoshikazu Tsuno
It is also reported that Foxconn and Pegatron are working on the mini iPad.
Some time back, Daring Fireball's John Gruber revealed that Apple is planning to launch a small, low-budget tablet that runs at the same 1024 x 768 resolution as the iPad 1 and 2.
If Apple decides to launch a mini-iPad it would be going against the wishes of late Apple founder Steve Jobs who quashed reports of iPad going the small tablet path.