Fresh off of the rumour mill, we’re hearing that Apple’s next iteration of the iPad will come in a 7 inch form-factor.

The rumour comes from Taiwan, where a newspaper has suggested that the iPad 3 will not only see a reduction in screen size, but will get a better quality Retina display and a release date before the end of the year.

Considering that both the iPad and iPad 2 arrived with a 9.7 inch size, we’d be surprised to see Apple drop down a couple of inches to the smaller scale devices. That said, we do anticipate a higher resolution screen on the next iPad, similar in quality to the Retina screen found on the iPhone 4.