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(Pocket-lint) - Another day, another Apple rumour. This time its the possibility of a smaller iPad that has us excited. Component suppliers in Asia are said to be testing a small form factor version of the tablet alongside Apple. 

The screen on the new device is said to be around 8-inches, smaller than the current gen iPad 2 which uses a 9.7-inch panel. Taiwan-based AU Optronics Co and LG Display Co are both said to be involved in the project - unlike Sharp which is putting together panels for Apple's full-size tablet. 

The new 8-inch iPad apparently preserves the current iPad 2's screen resolution, which on a smaller display will no doubt make it look sharper. Do take all this with a pinch of salt though, as even if it is true, Apple frequently works with suppliers to test product ideas; not all of them come to fruition. 

So is Apple working on two new iPads for release? Given all the form factor options on the market right now from the likes of Samsung and Motorola, it is entirely possible it wants a chunk of the action. 

The real competitor to a device like this would be the Kindle Fire. Apple would need to drop its prices slightly if it wanted truly to be able to impinge on Kindle Fire territory, but its not entirely impossible. Don't forget that Apple is also purported to be working on a bigger LTE packing iPad 3, with a Retina Display in tow. All these features could quite easily justify a premium and value model, like the iPod Classic and Nano before them. 

Small iPad? Like it? Let us know in the comments below ... 

Writing by Hunter Skipworth.