Latest rumor: HP launching new 7-inch TouchPad to challenge Apple iPad 2

If the ongoing rumors are to be believed, HP is set to bring a rival for Apple iPad 2. The company is set to unveil a smaller TouchPad tablet with a 7 inch screen. The tablet will debut in the UK in coming few days.

According to Taiwan Economic News, ODM giant Inventec will manufacture the tablet. Along with the 9.7 inch model, the total number of TouchPads is expected to touch 450,000 tablets per month, which is equivalent to almost one eighth of the expected monthly shipment of iPad 2.

The 7 inch version of the HP TouchPad is expected to have similar hardware configuration as the it bigger model, whether it's the screen resolution, the system on chip, the memory or even the lack of rear camera.

There are no details available on the pricing of the tablet. Will HP add some more key features to make it stand out from the existing rivals? The answer is yet to be found.