The Wall Street Journal says suppliers in Asia have been told to gear up for mass production of mini iPads.
It says Apple is likely to move towards a seven inch screen to match the competition from Google's Nexus tablet and Amazon's Kindle Fire.
The smaller tablets retail at $199, less than half the price of the cheapest iPad.
But it won't have the high-definition screen that's on the latest iPad.
So far there's been no comment from Apple.
