Now there's some serious competition from Google with Nexus 7, and many clone-type tablets on the market today, and Microsoft's surface on the horizon, Apple has to keep innovating more than ever if it's to hold onto its lead int he tablet sector.

Report: Apple Planning Smaller, Cheaper iPad [bloomberg.com]

The new model will have a screen that’s 7 inches to 8 inches diagonally, less than the current 9.7-inch version, said the people, who asked not to be identified because Apple hasn’t made its plans public. The product, which Apple may announce by October, won’t have the high-definition screen featured on the iPad that was released in March, one of the people said.