There are reports of Apple, preparing to release a smaller version of the iPad in time for the 2012 holiday season. The newest iPad would feature a screen that measures between seven and eight inches, down from the standard 9.7, according to Bloomberg.

It would not have retina display though, unlike the new iPad introduced in March. Bloomberg cites “two people with knowledge of the plans” in its Tuesday report, and says the new device could be officially announced as early as October.

The "iPad Mini" has been speculated for a long time now, but do we really need an iPad that's smaller? But with both Microsoft and Google entering into the tablet market aimed directly at the iPad, Apple's got to do something about it.

Last month, Microsoft showed off its Surface tablet, which in all cases trumps the iPad in design and functionality, while the iPad itself will definitely still be on top because of its app ecosystem, Microsoft's Surface is definitely a threat to all tablets around.

Last week at its annual developers conferences, Google introduced the Nexus 7 tablet, which will run on Jelly Bean, the latest version of the Android operating system.

Could a smaller iPad deliver the gut punching Apple hopes for? “It would be the competitors’ worst nightmare,” said Shaw Wu, an analyst at Sterne Agee & Leach Inc. “The ball is in Apple’s court.”

What do you think? Would you get an iPad mini?

[Bloomberg]