Apple may have started the production of a smaller iPad tablet according to Taiwanese news outlet, Digitimes.
Max Wang and Steve Shen claim that Apple partners in the supply chain have been delivering samples of the tablet for verification with volume production likely to occur in the third quarter of 2012.
Should this rumour be valid, then it could mean that Apple will launch two iPad tablets rather than one in 2012.
The device is said to take head on the Amazon Kindle Fire which has a 7-inch screen as well as the Barnes & Noble Nook tablet.
According to the publication, the tablet is set to sell for between $249 and $299 with a mainstream 8GB iPad 2 selling for between $349 and $399.
The iPad 3, which will be launched tomorrow, is likely to cost the same as the iPad 2 but with a much faster processor and a "retina display" touchscreen.
ITProPortal.com has a live blog of the event from London, covering the pre-iPad 3 buzz happening in the hours prior to the launch, rumours and the launch itself on Wednesday 7th. We suggest that you follow and bookmark this real-time live blog thread.