Apple Inc. may release a 7.85-inch iPad model by prior to the fourth quarter of 2012 according to The DigiTimes.

The publication this week said Apple will purchase 7.85-inch displays from LG Corp. and AU Optronics to begin production of a new iPad SKU Q2 of 2012.

Amazon Inc. in Nov. began sale of the 7-inch Kindle Fire, which sells at $199.00.

The DigiTimes in Dec. said Apple may sell the iPad 3 in three to four months.

The iPad, which currently dominates the tablet market at 30 million units sold, shipped 9.25 million units in the third quarter of 2011.

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