Apple Inc. is working with component suppliers in Asia to test a new tablet computer with a screen smaller than the iPad, sources told The Wall Street Journal.
Officials at some of Apple's suppliers, who asked to remain anonymous, said the company has shown them designs for a device with a screen size of around 8 inches and said the company is qualifying suppliers for it.
Apple's iPad 2 tablet launched last year has a 9.7-inch screen.
One source said the smaller device will have a similar-resolution screen as the iPad 2, amid reports Apple's iPad 3, set to be announced in early March, will have a higher-resolution screen.
A tablet with a smaller screen would help Apple protect its lead in an increasingly competitive market, analysts said.
Consumer demand for Samsung's 5.3-inch Galaxy Note and Amazon's 7-inch Kindle mean "consumers want a tablet that is smaller than the existing 9.7-inch iPad," Diana Wu at Capital Securities in Taipei told the Journal.
"IPad's features are good enough, but pricing would be an important factor in the mass market, especially in big emerging markets like China and India," she said.
