For a donkey’s age there has been speculation that Apple will finally get into the smaller tablet game albeit originally saying there’s no room for small tablets in the mobile space, and it appears that the smaller Apple tablet, currently being referred to as the iPad mini, just might be on its way in Q3 according to recent reports.

The guys over at Slash Gear say that DigiTimes, states from a report by Chinese Economic Daily News that AU Optronics has landed orders for LCD panels for Apple’s new 7.85-inch Apple iPad units that are expected to launch in Q3.

Apple has also placed Apple iPad Mini panel orders with LG Display; however has excluded Samsung Electronics from their suppliers list. Furthermore the word is Pegatron rather than Foxconn will manufacture the iPad Mini units.

According to the Slash Gear guys, Samsung Securities analyst JungHoon Chang wrote in a report back in December 2011 that Apple plans on launched the Apple iPad 3 in 1Q12 and in 3Q12 a new 7-inch product temporarily called the iPad Mini.

Perhaps it is the continuing legal confrontation between Apple and Samsung that has caused Apple to exclude old Sammy from their supplier list for the iPad Mini, but of course nothing along those lines has been confirmed by either company so for now at least all this remains in the realms of rumour, but if true we could soon see a smaller Apple iOS slate hit the mobile space.