Apple may be working on a new generation of iPad with much smaller screens according to rumours that emerge from Taiwan courtesy of tech website Digitimes.
Sources told the newspaper that the second generation iPad would come with 5.6-inch and 7-inch OLED panels as early as the fourth quarter with ODM giant Compal Electronics being the most likely to land the contract from Apple.
The smaller models will apparently be aimed the e-book reader market while the 9.7-inch model would focus on the multimedia entertainment segment.
OLED screens would be used to differentiate Apple products from the competition and because Apple's current pricing strategy allows it to introduce new technologies even when they still command a premium.
However, Digitimes' own analysts noted that the largest OLED maker, Samsung Electronics, is currently producing OLED screens at full capacity with Samsung's own products absorbing all parts produced. It therefore appears unlikely that Apple will have enough parts to fulfill demand for OLED based iPads.
The iPad has been a roaring success ever since it was launched earlier this year. More than three millions units have been sold until now, possibly bringing in at least $2 billion worth of revenues but supply has been severely constrained due to unexpectedly high demand.