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The story says that sources say the new tablet will have a 7.85-inch LCD display with a lower resolution that the current 9.7-inch iPad. The displays for the new iPad reportedly will be made by LG Display and AU Optronics.
Apple would be jumping into a market that now includes the Google Nexus 7 and the Amazon Kindle Fire, both based on versions of the Android OS.
There is widespread speculation that Apple will hold an event to launch the new device some time later this month.