The tablet race is on full steam as rumors about the iPad Mini release date keep surfacing.

According to CNET, the display production for the upcoming Apple iPad Mini will start as early as this month.

Production of the 7.85-inch display slated for use on a smaller version of the iPad should begin in August, an analyst told CNET.

"We expect panel production to start in August, with production ramping up to high volumes (more than a million units per month) in the fourth quarter," said Paul Semenza, an analyst at NPD DisplaySearch, in response to an e-mail query.

Semenza said this is DisplaySearch's "understanding of the activity for the 7.85 [inch] panel expected to be used in the iPad Mini."

If this production schedule plays out, it could indicate a late 2012 launch, he said.

Recent reports say that the iPad Mini will be announced on September 12, which is the same day Apple will introduce the new iPhone 5.

According to KGI Securities analyst Ming-Chi Kuo, CNET reported that, assuming an iPad Mini does pop up in September, the analyst is anticipating heavy demand.

He's already projecting unit sales of 1.8 million just for the few short weeks marking the end of the calendar third quarter. And in the fourth quarter, the new iPad could grab sales as high as 13 million, surpassing those of its bigger brother.

Reports say that the new little iPad will feature a 7 to 8 inch IGZO display with 330 pixels/inch. It will be more affordable. It is also assumed that the new tablet will feature Apple's upcoming operating system, iO6, which includes a new, Google-free Maps app, and Passbook, and promises better Facebook integration, better maps, and better video conferences that use cellular data, according to Entrepreneur.com.

WebTechPoint reported that an analyst from RBC Capital has predicted that Apple will sell close to 40 million iPad minis in the next 12 months. According to RBC Capital Markers analyst Amit Daryanani, the iPad mini sales will boost the prospects of Apple, generating $10 billion in revenue and an extra $1.15 a share in profits.