Apple developing smaller iPad to rival Google's Nexus 7 device

Apple is reportedly developing a smaller 'iPad Mini' model which would compete with Amazon's Kindle Fire and Google's Nexus 7.

Bloomberg cited sources familiar with the matter in reporting that the device's screen would be roughly between 7in and 8in in diameter and would be due to arrive by the end of the year. The report suggested that Apple will look to introduce the device by October.

The report indicated that the device would not use the Retina display hardware Apple offers in its current iPad and iPhone lines.

Such a device would add a second form factor to the iPad line. Currently, the device is only available as a full-sized tablet with a screen size just under 10in.

Currently, the 7in tablet space is dominated by Amazon's Kindle Fire. The tablet soared to the top of sales charts earlier this year when it was released, claiming more than half of all Android tablet sales in its first months on the market.

Should it be released in time for the holiday season, a 7in iPad would threaten to kill much of the momentum generated by Google's Nexus 7 tablet. The device, which is slated for arrival later this month, will headline the rollout of Google's Android Jelly Bean platform.

Though Apple continues to dominate the tablet space, the company should see increased competition in the coming months as both the Nexus 7 and Microsoft's line of Surface tablets hit the market.