The Wallstreet Journal reports that Apple is working on a new tablet with a smaller screen. The Cupertino company is said to be testing the new device with its component suppliers in Asia. According to rumors, the smaller tablet will have a screen with a similar resolution as the iPad 2 and the company is reportedly working with screen makers including Taiwan-based AU Optronics Co. and LG Display Co. But it is not sure if the company will release the small tablet at all...

Analysts believe that a tablet with a smaller screen would allow Apple to strengthen its market share. The Wallstreet Journal writes:

"A smaller tablet device would broaden Apple's portfolio and could help it compete with rivals such as Samsung Electronics Co. and Amazon.com Inc. It would also begin to emulate the strategy it took for its iPod music player, which it released in a number of shapes and sizes over time. The company has taken a different tack with its iPhone, releasing one design at a time."

In general it seems that consumers want a tablet which would be smaller than an ordinary iPad - it is proved by the demand for Samsung's Galaxy Note and Amazon's Kindle.

On the other hand the newspaper reminds that in October 2010, Steve Jobs, criticized smaller tablets, saying the iPad's 9.7-inch form was "the minimum size required to create great tablet apps."

Source: http://online.wsj.com