MacRumors reports that DigiTimes has another story today regarding the possibility that Apple is planning to release a 7.85-inch iPad in 2012. In the new story, DigiTimes refers to a report in Taiwanese newspaper United Evening News, which mentions several companies that it says are involved in the production of the smaller tablet, including Pegatron, which it says will be assembling the new tablet, rather than Foxconn. The report goes on to say that LG Display will be making 70-75% of the displays, with AU Optronics making the rest of them. Apparently Samsung has been completely excluded from the entire production process. Radiant Opto-Electronics and Forhouse are also said to be contributing backlight parts for the 7.85-inch device.
The more stories such as this one emerge, the more credible the idea of a smaller iPad is starting to sound, especially bearing in mind that even the Wall Street Journal is saying it's going to happen.
Source: Production of 7.85-Inch iPad Reportedly Moving Closer as More Suppliers Named - Mac Rumors