Apple iPad Mini rumors have been around since the fall of 2009. But from January 2012, the buzz around iPad Mini has surprisingly increased. Following the evolution of the new iPad, Apple is being suspected of working on a smaller version of the iPad. Apple iPad Mini is expected to launch in Q3 with a price tag of $249-$300.

Apple analysts have always claimed that the Cupertino tech giant will release a 7-inch tablet to compete with entry-level tablets like Amazon's Kindle Fire and also Blackberry Playbook. The recent rumor originates from a Chinese Web site NetEase [English Translation], which claims that assembly chains are working on a 7-inch prototype (7.86-inch to be precise) of Apple iPad. Third quarter shipments will include 6 million units of iPad Mini.

As per current market figures, the sales of Amazon Kindle Fire have cooled down. The next big thing in tablet market is Windows 8, which will also be featured in tablets along with laptops and desktops. iPad Mini is expected to be released to compete against Windows 8 tablets that are also releasing in second half of 2012. It is also believed that Apple's new bet will be the biggest threat to the much-rumored Google Nexus tablet that is also hitting the market around the same time. The rumored price tag of Google-branded tablet is around $200. On the other hand, it is rumored that Apple's iPad Mini will be priced between $249 and $299.

The screen resolution of iPad Mini is believed to be 1024x768 pixels, which sounds appropriate as first and second generation iPads feature the same resolution. According to NetEase, Foxconn and Pegatron will handle the task of manufacturing iPad Mini.

(reported by Johnny Wills, edited by Dave Clark)