Following the earlier report about iPad 3 with 4G LTE support, The Wall Street Journal is now reporting that Apple is also working on new iPad model with smaller screen size. A source with component suppliers in Asia has revealed to WSJ that Apple has shown them screen designs for a new device that will be smaller than the current iPad model. Lorraine Luk wrote on WSJ:

Apple Inc. is working with component suppliers in Asia to test a new tablet computer with a smaller screen, people familiar with the situation said, as it looks to broaden its product pipeline amid intensifying competition and maintain its dominant market share.

Officials at some of Apple's suppliers, who declined to be named, said the Cupertino, Calif.-based company has shown them screen designs for a new device with a screen size of around 8-inches, and said it is qualifying suppliers for it. Apple's latest tablet, the iPad 2, comes with a 9.7-inch screen. It was launched last year.

One person said the smaller device will have a similar resolution screen as the iPad 2. Apple is working with screen makers including Taiwan-based AU Optronics Co. and LG Display Co. of South Korea to supply the test panels, the person said.

Apple, which works with suppliers to test new designs all the time, could opt not to proceed with the device.

For past one year we have also been hearing that Apple is working on a smaller tablet that will aim at the lower end of tablet market. Apple’s smaller Tablet won’t be bare bone minimum like the Amazon Fire with no camera, no mic, just 8GB storage and limited Amazon UI, but it will also not be as costly as the bigger 9.7-inch iPad 3.