Something would be up if there wasn’t a rumour of a new Apple device entering production, but today a new report suggests that the Cupertino-based company has begun to start production of its new tablet device, which is being referred to as the iPad 3.

According to AllThingsD, Susquehanna Financial analyst Jeff Fidacaro believes Apple has started to increase iPad production in the fourth quarter, bumping up its builds to 12 to 14 million units from between 11 million and 13 million.

The increase is said to be influenced by the introduction of a new iPad device, which will run alongside existing iPad 2 production.

Fidacaro told the WSJ publication:

“Since our last month supply chain checks we are now seeing 600,000 to 1 million iPad 3 builds showing up on the plan for the fourth quarter of calendar 2011. Our previous estimate did not include any iPad 3s.”

In July, we reported that Apple had begun trial production of its new A6 processor, choosing Taiwanese chip-maker TMSC to slowly move the Cupertino-based company away from rival Samsung to a non-competitive vendor. Reports suggested that production of the processor could begin in October, with it likely that Apple would incorporate the new chip into its next-generation iPad and iPhone devices.

Apple introduced the iPad 2 in March of this year, with an early 2012 release likely for a new tablet device, if such a device is ever confirmed.