There is a rumor at large that Apple will release the new iPad mini in early 2012.

According to the Taiwan-based United Daily News, Apple received 7.85-inch screens with the same 1024x768 resolution as the current iPad. This suggests that the screens will be used to the new iPad mini.

The report added that AU Optronics and LG Display sent samples of 7.85-inch screen display to Apple as the company gears up for the introduction of a new version of the iPad.

The new rumor was supported by the claim of Ticonderoga Securities analyst Brian White who thinks that Apple is gearing up for the revelation of the iPad mini early next year. He said his research suggests that Apple will release a lower-priced iPad in early 2012.

This suggests that Apple is aiming for price sensitive-consumers and wants to explore the market of thrifty or price-conscious buyers. The new iPad mini will also leverage the battle between Apple's iPad and Amazon Kindle Fire with a friendly $199 price tag. White further said the "mini" in the new iPad may not mean a reduction on the screen size but on the cost of the tablet as he speculated that the new device will only cost no more than $200.

Steve Jobs' Stand

Apple's late co-founder and ex-chief Steve Jobs explained the rationale of the 10-inch iPad. He made some research on the company's competitors that released 7-inch tablets.

At a conference last year, Jobs mentioned that Apple's rivals released tablets sporting a 7-inch screen display, which is almost half of the company's iPad size. He thinks that the 7-inch screen size is too small to effectively serve the functions of the device. People may not be able to touch the right keys with a screen that small, he added.

He explained that Apple is not joining the bandwagon and will not release a small-screen iPad because it wants to be the elite in the tablet wars and does not want to reduce the cost. On the contrary, he said that the 10-inch screen display is the minimum to fully express the product.

Jobs also said it would be quite difficult for developers to deal with different screen sizes as they have to adapt the software used in the device. He ended with a firm statement that Apple is trying to give only the best products in the market with aggressive prices and the company would continue to do so on the iPad and iPod.

Tablet Wars Still On

The Amazon Kindle Fire with its $199 price tag, which is incredibly affordable to most consumers as well as Samsung's Galaxy Tab pose real threats to Apple's iPad.

With the imminent release of newer and smaller versions of tablets, will Apple change its direction and join the bandwagon?