Allegedly Quanta Computer will be tasked with developing the larger-sized iPad for mass production for release in the latter half of the year. If the rumour does pan out, the 12.9-inch iPad will be the third tablet in Apple's line-up, alongside the 7.9-inch iPad mini and 10.1-inch iPad.
Apple has long been rumoured to be contemplating a larger iPad, to appeal to customers seeking a bigger screen for an enhanced media experience. Apple won't be alone in the space, as rumours and regulatory filings have hinted at Samsung releasing a Note tablet similar in size.
Digitimes has been hit-or-miss in the past, but it's worth noting it's been correct in its reports centred around launch timelines.
We first heard word from the reliable Wall Street Journal in July that Apple had a prototype iPad with a larger display. Another September report noted that Quanta display - the same manufacturing partner as mentioned by Digitimes and which has also manufactured MacBook Air parts for Apple - had parts for Apple's 12-inch iPad in the works.
Additionally, Digitimes says, Inventec, Quanta and Foxconn Electronics are currently competing over Apple's iWatch orders, also rumoured to be launching in 2014.
On Apple's most recent investor earnings call in September, CEO Tim Cook once again teased new product categories for the company.
"If you look at the skills Apple has, from hardware to software to services and an incredible app ecosystem, this set of things are very, very unique," Cook said. "We obviously believe we can use our skills in building other great products that are in categories that represent areas that we do not participate today."
It's not clear if the 12.9-inch iPad falls into the areas alluded to by Cook.