Chances are you’ve heard the rumors about a smaller iPad. You’ve also probably heard that it’s allegedly going to be announced in October. According to DigiTimes, this is no longer the case. Their sources say that the iPad mini’s touch screen module is facing some issues that prevent it from entering mass production. Both LG Display and AU Optronics are each said to be in the process of making 500,000 panels for the smaller iPad this month. To give you an idea of how low that figure is, Apple reported 17 million iPad sales between April and June.

Now we should note, DigiTimes doesn’t exactly have the best track record in the world. When it comes to rumors, they’re right about half the time, which is still a heck of a lot better than most other sites. Should you believe them about this story though? That’s hard to say. We have confirmation from AllThingsD, The New York Times, and Bloomberg that a smaller iPad is supposed to be unveiled in October. Those three sources are traditionally bulletproof, though it wouldn’t really surprise us to find out that Apple has decided to change its mind and release a smaller iPad in conjunction with the fourth generation iPad during the first quarter of 2013.

Why are we even talking about the iPad mini? Because right now the only tablet out on the market that’s worth buying that’s also not an iPad is the $199 Nexus 7. When Apple enters the smaller/cheaper tablet market, do you think people will still keep on going for the Nexus tablet? There’s also the new Kindle Fire tablets, but again, same question, will a small iPad prove to be too temptatious to resist?

Here’s hoping that Google has something up its sleeves to unveil at the next Nexus event. You just know they’ll hold another one by the end of the year!