(Pocket-lint) - Further reports suggest Apple could be set to unveil a smaller iPad later this year as it looks to increase its grip on the tablet market.

Speculation is mounting that contrary to former opinion, the seven-inch iPad will indeed have a Retina display. Website iMore’s source claims the smaller iPad will be “identical in every way” to the current iPad, apart from the dimensions, obviously.

It was suggested that the inclusion of a Retina display would bulk up the cost of a device that will be geared towards a more-affordable segment of the tablet market.

Not so, according to the latest rumours, with Apple aiming for a $200-250 price point, though with a maximum storage of just 8GB.

Latest reports suggest Apple enjoyed a 68 per cent market share in tablet sales during Q1 of 2012. By extending its own tablet offering with such competitive pricing, Apple could be set to tighten this stranglehold.

“The reason for such aggressive pricing is to do to the tablet market what Apple did to the MP3 market in 2004 with the expansion of the iPod product line -- leave absolutely no space for competitors,” added iMore’s source.

Do you think Apple will bring out a seven-inch iPad complete with Retina display? Let us know your thoughts.

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Writing by Danny Brogan.