The Apple iPad rumour mill is running on overtime – the latest whisperings, courtesy of WSJ, suggest that Apple is testing out an 8in iPad.

The unnamed sources (salt shakers at the ready) reckon that the smaller 8in iPad will accompany the 9.7in Retina Display-toting iPad 3 and will pack a screen close to the 1024×768 resolution of the iPad 2.

The reported 8in model will reportedly arrive with 4G technology, which will also apparently be featured in the iPad 3.

Although Apple often make unreleased prototypes in a variety of different sizes, it’s not too farfetched to picture an 8in iPad offering an alternative to the flagship iPad 3 for Appleites on a budget.

Steve Jobs famously stated that 7in tablets would be dead on arrival. Will an extra inch make all the difference? We’ll find out hopefully on or near March 7, the speculated release date for the iPad 3 announcement.