With competition in the tablet market having intensified, and with Google having ventured into the arena with its smaller- and affordable-than-iPad Nexus 7, unnamed sources familiar with the proceedings at Apple have revealed that the iPad-maker has plans underway for a smaller tablet.

Since Apple plans are confidential, the sources have disclosed, on the condition of anonymity, that a new smaller tablet with 7.85-inch screen is being developed by the company. The cost of the smaller tablet - which will likely be unveiled this year - will be notably lower than the $499-priced new iPad which features a 9.7-inch screen.

In the opinion of analysts and technology industry executives, Apple will probably follow part of a textbook business strategy for its smaller-screen tablet; in an attempt to entice buyers looking for varying tablet sizes towards the iPad line.

With tablet race heating up, experts feel that the strategy that Apple is expected to follow will chiefly comprise devices which at available at different price levels; and customized with functions that allow a multitude of uses.

Noting that Apple supposed plans for a smaller tablet are apparently aimed at helping the company retain its dominance in the tablet space, Leslie Grandy - an ex-manager at Apple, and currently a consultant and an adviser to start-ups - said that a small-sized iPad will be an attractive option particularly for those people who cannot presently carry their iPads with them because they are too big and heavy.