The tablet PC market continues to grow at a rapid rate with the Apple iPad still leading the way, but more recently we have seen a number of smaller and cheaper devices becoming available and Apple has long been rumoured to also be developing a smaller offering. Today we have news that the rumoured iPad mini may be produced in Brazil in time for a Xmas release.

There has been a number of rumours over the last few months that Apple were preparing to release an iPad mini, and now according to a report on AppleInsider the device will allegedly be assembled in Foxconn’s factory in September for a holiday release.

Chinese publication MacOtakara a, is stating that a reliable source in China has said that CNC machine testing for the device has been completed, and the actual production of the unit will be taking place in Brazil at a Foxconn factory that already produces certain iPad models and iPhone’s.

The source continues to reveal the manufacturing plans and states that September is the expected production start date, which will then ramp up in readiness for the busy Christmas shopping season. The device is still believed to feature a 7.85-inch display but the form factor is still up for question with hints that the new tablet PC will be more like a third generation iPod nano than a smaller iPad.

It is being claimed that the prototype is around the same height as the upcoming Google Nexus 7, but is slightly wider but with a similar thickness to the iPod Touch. The iPad mini is claimed to be slimmer than the Amazon Kindle Fire, with Amazon also rumoured to be launching a new model soon.

The iPad mini is tipped to feature 3G wireless connectivity with the source claiming to have seen a list of carriers down to offer the device, but not every carrier that currently offers the iPad will have access to the new model when it is first released. The same source also stated that the iPhone 5 will make its debut in September which has been suggested before.

Do you like the sound of an iPad mini if it is available at a competitive price?