Makers in Apple's iPad supply chain have started delivering samples of 7.85-inch iPads for verification, with volume production likely to begin in the third quarter of 2012 at the earliest, according to industry sources.

The planned launch of the 7.85-inch iPad is apparently to take on Amazon's US$199 7-inch Kindle Fire as well as a comparable model from Barnes & Noble, although Apple already took up nearly a 60% share of the tablet PC market in 2011, indicated the sources.

The price of the 7.85-inch iPad is likely to be set at US$249-299, since Apple is also expected to release an 8GB iPad 2 for US$349-399, and has lowered the price of the 16GB iPad 2 to US$449, the sources noted. 

Source:digitimes