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There is an ongoing rumor that Apple will release an iPad mini early 2012.

According to Taiwan’s United Daily News, they have received 7.85 inch screen with the same resolution as the current iPad, which suggest that it will used for iPad mini.

The report also said that AU Optronics and LG Display also sent samples of 7.85 inch display to Apple as they assemble and gears up the iPad mini release for next year.

The claim was reinforced by Ticonderoga Securities analyst Brian White who thinks that Apple is already preparing to release iPad mini next year. He said that his research is pointing towards the direction that a lower priced iPad will be introduce on the first few months of 2012.

Apple aims to tap the market of thrifty consumers who mind the prices of products. The new iPad mini will also dismiss the Amazon Kindle Fire that bears the $199 price tag, which is quite affordable for ordinary consumers. However, Brian White said that the “mini” affixed to iPad means a reduction on the price and not on the size of the device. He also added that the new iPad mini may cost around half to $200.

The company said that the new product is a product of Apple’s ex-chief Steve Jobs’ digging in the company’s competitors that launch tablets that sport 7-inch screen.

In a conference held last year, Steve Jobs mentioned something about his competitors. He said that most of rival companies release a 7-inch iPad, which is only 45 percent of Apple’s iPad screen.

Jobs’ think that the 7-inch screen is too small to serve the functionality of the product. People may not be able to touch accurately the keys in the new iPad. He also explained that Apple are not releasing iPad sporting a 7-inch screen because it does not want to reduce the cost but he thinks that a screen that is quite small will not be able to fully expressed the product.

Jobs’ explained that the developers will have to adapt on the screen sizes as they have to change their software everytime there is a change in the size of the screen. He closed by saying that Apple is striving to give only the best products at aggressive prices and the company will do that on the iPad and iPod.

However, the unveiling of Amazon Kindle Fire with an affordable $199 price tag a few weeks back may possibly make Apple to reconsider its decision.