Is Apple Already Manufacturing its Seven-Inch iPad?

Another report suggests that Apple (NASDAQ: AAPL) is closer than ever to releasing a miniature iPad.

According to AppleInsider, Japanese language website MacOtakara has spoken to a reliable Chinese source who claims that Apple is about to begin manufacturing the iPad Mini at Foxconn's factory in Brazil.

Scheduled to go into production this September, the tablet reportedly completed CNC machine testing in China. MacOtakara states that the smaller iPad should be available by the holiday shopping season.

Other details are scarce. However, AppleInsider said that an existing prototype is the same height as Google's (NASDAQ: GOOG) Nexus 7 but could be slightly wider. The device could be thinner than Amazon's (NASDAQ: AMZN) popular tablet, the Kindle Fire.

Interestingly, the iPad Mini is expected to come in both Wi-Fi and 4G varieties. However, another rumor indicates that the 4G service could be limited to select carriers. This could present an interesting challenge for Verizon (NYSE: VZ) if AT&T (NYSE: T) gains an exclusive deal with Apple, or vice versa.

Rumored to be priced at $299, Piper Jaffray analyst Gene Munster predicts that the device will sell between four and six million units in the December quarter.

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