Production of components for a smaller version of Apple’s iPad has started, reports the Wall Street Journal. According to executives at South Korea’s LG Display and Taiwan’s AU Optronics, mass production of LCD screens for the new Apple device began in August.

The smaller device will have a lower resolution 7.85-inch screen compared to the current 9.7-inch version of the iPad, according to the sources.

Nikkei reports that Japanese operator KDDI is in talks with Apple about selling the smaller version, allowing it to compete with Softbank, which is currently the sole operator selling iPads in the country.

Apple is looking to combat the slew of smaller (and cheaper) tablets that have been launched in recent months including Google’s Nexus 7 and Amazon Kindle Fire. Reports have suggested that Apple plans to unveil the smaller device later this month.