The smaller iPad rumors continue. “The Wall Street Journal” (http://macte.ch/cTeBw), quoting the usual unanimous “people familiar with the situation,” says Apple is working with component suppliers in Asia to test a new iPad with a smaller screen (about eight inches).

The article says the smaller tablet will have a similar resolution screen as the iPad 2. Apple is working with screen makers including Taiwan-based AU Optronics and LG Display Co. of South Korea to supply the test panels, per the “WSJ.”

“A smaller tablet device would broaden Apple’s portfolio and help it better compete with rivals such as Samsung Electronics Co. and Amazon.com Inc.,” the article adds. “It would also begin to emulate the strategy it took for its iPod music player, which it released in a number of shapes and sizes over time.”