A rumor started circulating in Mid-December about Apple intending to invade the mid-segment market with a 7.85 inch iPad seeking market dominace. The rumor was brought by DigiTimes, the sources of most of our iPad rumors, claiming that sources close to the supply chain believe that Apple is seeking on widen its coverage range by offering tablets with prices that will appeal to the middle segment.

Sources from Apple’s supply chain have claimed that there will be two versions of the new iPad, one targeting the high-end segment and the other the mid-range. Digitimes Research believe the two new iPad models will both be equipped the A6 processor with high-end model coming with a high resolution panel (2048×1536) and the mid-tier model featuring the same grade of panel as iPad 2 (1024×768).

We all know that the next gen iPad is likely to release in the first quarter of 2012 and to price at $499 with the current iPad 2 to drop to $399, but if Apple releases two versions of the next iPad, it`s very likely that the pricing will vary. It`s possible that the 8.75 will be priced at $299 to cater for the mid-range segment.

Currently, the non-Apple section prices range from US$199-399 like Amazon`s Kindle Fire. If Apple drops its iPad price to US$299, it could seriously affect the non-Apple camp’s pricing strategy.

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