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Apple’s rumored MacBook Air with a twelve-inch Retina screen has allegedly entered limited production, according to sources with Apple’s supply chain Wednesday morning who spoke to DigiTimes, a Taiwanese trade publication.

Apple has reportedly commissioned contract manufacturer Quanta Computer to start building the ultra-thin notebook in small volumes in October, with output expected to increase gradually beginning November.

Apple is holding a media event next Thursday so a Retina MacBook Air could be on tap along with new iPads, a (possibly) refreshed Apple TV hardware and what not.

It should be slimmer than the existing 11.6 and 13.3-inch MacBook Air models, “posing challenge to component makers,” according to the sources. Due to low yield rates, initial production is in limited volumes so the computer “may not be able to hit the store shelves in time for Christmas”, the sources indicated.

A sketchy report by A Tech Website claims the forthcoming notebook will come in iPhone-inspired Space Gray, Silver and Gold. Taiwan’s Economic Daily News suspects it won’t be available before 2015 due to Intel processor delays.

The Retina Air is widely expected to incorporate a fanless design, courtesy of Intel’s ultra low-power processor family, and an even thinner appearance than the current models.

So, who’s in the market for a Retina-enabled MacBook Air?