Apple are planning on releasing an iPad 'Mini' in time for Christmas 2012, according to reports.
The smaller product, which will feature a 7.85-inch screen, is being produced in an effort to ward off competition from Amazon and Samsung, DigiTimes reports, citing quotes from "sources in the supply chain."
Coming in the final quarter of 2012, the iPad Mini will provide the bookend to a year that should also see the iPad 3 released withing the next few months.
New research has suggested that 60 million tablets will have been bought by the end of 2011, with Apple accounting for 70% of total sales.
However, Samsung's Galaxy tablets are beginning to make a dent in Apple's sales, coming as it does in different sizes, with Amazon's Kindle Fire proving popular, costing jut £199 (£127).
Apple could be in for a busy new year, with the eagerly-awaited iPhone 5 expected to launch in the summer, and Apple's first foray into television production also expected to be released.
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