Piggybacking on our previous analysis on why Apple may launch a 13-inch iPad we have reports flowing in from supply chain within both Apple’s and Samsung’s camps that the two leading smartphone and tablet manufacturers are busy working on 12-inch tablets and they will be released sometime in 2014. Sources familiar with the matter are claiming that Apple is working with Quanta for its 12-inch iPads while Samsung is busy working on similar tablets in-house.

DigiTimes claims through unnamed sources that Apple is also working with Quanta for its smartwatch iWatch which is also expected to debut sometime in 2014. Earlier there were reports from multiple sources including The Wall Street Journal, Macotakara, and DisplaySearch that a 13-inch iPad was already in production and that it will debut sometime in 2014. However, the new report claims that Apple is working on a 12-inch variant.

Samsung on the other hand was looking to partner with Google on a larger tablet, but according to the source it didn’t work out as Google is too busy with its 7-inch Nexus range of tablets. Samsung has instead opted for going all alone for its 12-inch tablet.

Declining PC sales seems to be the primary reason behind both the companies opting for a larger tablet. Having said that, both the companies will see a decline in sales of their own notebooks and PCs once and if they release larger tablets. However, larger tablet may help offset some of their declining PC sales.