Hot on the heels of Apple’s official unveiling of the iPad 3 come March 7 is the news coming from Digitimes of Taiwan saying that Apple likely to begin production of a new iPad. This time, this iPad is said to be sporting a 7.85-inch screen display. According to the report, makers in Apple’s iPad supply chain have begun delivering samples of said iPads for verification. Volume production will most likely start in the third quarter of 2012. The report also says that Apple’s decision to come up with a smaller iPad has something to do with the Kindle Fire. This iPad will be going up against the Kindle Fire and Barnes & Noble Nook ereaders. Does this mean that the said iPad will have lower specs than the iPad 2 and iPad 3? Of course, given the probably lower specs and smaller screen size, the said iPad will most likely be priced around $249-$299. If this indeed is true, I wonder what the late Steve Jobs will say since he once said the it is unlikely that Apple will produce a tablet with a smaller screen size than the current iPad.