According to a story published Tuesday in Taiwan's Chinese-language Economic Daily News financial newspaper, Apple is prepping a 7-in. iPad for a holiday launch later in 2010. The newspaper cited sources that said several Taiwanese component makers have won contracts for a smaller iPad.

IDG News Service reported on the Economic Daily News account earlier Tuesday.

Last week, DigiTimes, an English-language IT publication also based in Taiwan, claimed that component manufacturers were preparing for a smaller iPad to be launched in early 2011. The new model would have a screen in the 5-in. to 7-in. range, said DigiTimes, and would be priced under $400.

But a pair of U.S. analysts disagreed on whether Apple would add to its iPad lineup by shrinking the current model.

More: http://www.reuters.com/article/idUS28719005220100817