Apple considering 'smaller, cheaper' tablet

If media reports in the United States are to be believed, Apple is in the process of developing a new tablet that promises to be 'smaller and cheaper' than the latest iPad.

According to sources 'with knowledge of the project', the plans will be announced in late 2012, early 2013.

The device will be built with a 7.85 inch screen, almost two inches smaller than the current iPad screen. No other details have been released.

Apple, however, have declined to confirm or refute the reports.

If true, the tech giants will face still competition, especially in the US, with Google beginning to ship the Nexus 7, Amazon's Kindle Fire already on the market and Microsoft recently announcing the imminent release of its Surface tablet.