The iPad, which debuted earlier this year and sold over 3 million in the first 80 days, is expected to undergo an update in the second quarter, the report notes. Some of the other changes expected to come include a thinner model that is lighter to carry.
Other Wall Street soothsayers expect a new version of Apple's iPad may hit as early as the first quarter and possibly include a smaller seven-inch screen, compared with its current 9.7-inch display, according to an earlier Bloomberg report.
As talk of an iPad upgrade begins to filter out ahead of the busy holiday selling season, the effect could create a slowdown in iPad sales as shoppers hold off buying the current version in anticipation of one with a few more bells and whistles. Apple may rely on the old ace in the hole and slash prices to drive sales. That strategy, however, does well for revenues but hurts the bottom line.
Apple shares were down 2.63% to $283.51 in morning trading, compared with its close Monday.