Is Apple planning a 7.85 inch iPad?

According to Digitimes, Apple is rumoured to be working on a 7.85-inch iPad which is said to go into production next year.
ipad-small  Apple will not only be introducing and selling the next generation iPad 3 but will also is said to be working on a smaller version which they plan to launch in the fourth quarter of 2012.

The release by Digitimes said:

Apple is likely to launch a 7.85-inch iPad prior to the fourth quarter of 2012 in addition to a new iPad scheduled to be released at the end of the first quarter, according to sources in the supply chain.

According to sources, Apple is said to have purchased 7.85-inch panels from LG Display and will also buy panels from AU Optronics (AUO) adding that makers in the supply chain are likely to begin production of the 7.85-inch models at the end of the second quarter of 2012.

So is Apple finally getting into the size-variants game like Samsung? Or are they just getting worried about the consumer trends? Well we’ll wait and see.