Apple looks to have a full lineup of products available for the holiday season. With iOS 8 unveiled, an iPhone 6 launch date set, and an iWatch waiting in the wings, rumors abound that Apple is starting up production on two new iPad models, both set to arrive before Christmas.

Apple has already started manufacturing the next generation iPad Air with a 9.7-inch screen. The device should be unveiled by the end of this quarter or during the early part of the following one. Also on its way is a new 7.9-inch iPad mini, likely to be available by the end of the year.

Besides the new hardware, iOS 8 is expected to offer one of the biggest updates to Apple’s OS in recent years.  These include allowing iPads to use third-party keyboards, additional widgets for increased customization, and a jump in data-sharing between apps. This update will address gaps that have emerged between Apple and Android, creating an iOS with a more open approach to users.

However, even with the continued buzz of new products and software, the next generation of iPads will launch into a cluttered environment. The sales of Apple tablets have been steadily declining over the past two years. Tech analysts on Wall Street believe Android phablets are eating into tablet sales across the board, causing a significant decline in iPad sales. The drop has been far larger than expected for Apple’s second biggest product category.

Declining tablet sales may also partly explain its recent tie-up with IBM, aimed at bringing more iPhone and iPad devices into enterprise and business applications. Apple chief exec Tim Cook has said he’s not worried about soft iPad sales and has repeatedly pointed to the company’s increasing focus on IT and the business-to-business market, where tablet penetration remains relatively low.

If phablets are eating up tablet sales, Apple’s 5.5-inch display iPhone 6 may help it take a slice of that market. Apple has reportedly set the product launch for September 9.