One of Apple’s largest display suppliers is reportedly close to halting production of 9.7-inch iPad screens, possibly signalling a major shift to the smaller iPad mini.

According to sources at Reuters, Sharp has “nearly halted” production of the larger screens at its Kameyama plant in Japan after “a gradual slowdown” was implemented at the end of 2012.

The sources didn’t say how much of the slowdown was due to seasonal changes in demand or consumers opting for the smaller iPad mini, which was launched last October.

Sharp declined to disclose production levels, while Apple has not commented. Nevertheless, the story has heightened concerns that iPad sales may have suffered a weak Christmas shopping period. Apple reports its holiday quarter numbers next week (23 January).

Macquarie Research has estimated that regular-sized iPad shipments will tumble nearly 40 percent in the current quarter to about 8 million from about 13 million in the fourth quarter, although Apple’s total tablet shipments will show a much smaller decline due to strong iPad mini sales.

Reports earlier this month suggest that Sharp and Apple’s other two main display suppliers – LG and Samsung – are also scaling back production of iPhone 5 displays. The drop in orders suggests sales of the latest iPhone have not been as strong as Apple anticipated and could also be waning.