LONDON (ShareCast) - Apple may be moving to cut Google off from the tablet market by producing a smaller version of its iPad in order to compete with the Internet giant’s new Nexus 7.

The new model would have a seven- to eight-inch screen, smaller than the current iPad’s 9.7 inches, according to sources familiar with the matter quoted by Bloomberg.

The less expensive model could be released in October and would be meant to undercut rivals Google and Amazon.com. The Nexus 7 and the Kindle Fire both have seven-inch screens and cost only $199. This compares to the latest iPad’s price that ranges from $499 to $829.

Apple closed up 1.16% at $599.41 in yesterday’s shortened session, while Google advanced 1.27% to $587.83. Wall Street will remain closed today for Independence Day.

JM

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