Apple has begun mass production of the Mini iPad, claims a report.
The company that sparked the tablet craze has been facing serious competition from smaller products like the Kindle Fire.
The Wall Street Journal says they were told by "executives at component makers" that production was underway for a 7.85 inch tablet computer with an LCD screen.
It is reported the resolution is lower than that of the iPad, and that the smaller tablet will not have a retina display.
The current iPad measures 9.7 inches diagonally.
This is the second time we have heard rumors to this effect, and the first story claimed production was to begin in September.
The small tablet market has put severe pressure on Apple's iPad hegemony, and the move to make a smaller, less expensive version of the popular device could prove instrumental in keeping the world's largest company at the top.