Gurman reports that the 12-inch iPad will be revealed next month at the Apple Worldwide Developers Conference in San Francisco.
The company reported that iPad shipments were down 23 percent in the second quarter from the year-earlier period. "With iPad sales down, they basically have a three-prong strategy for taking the iPad into the future," Gurman told CNBC's "Squawk Alley."
The new feature will allow users to view two apps at the same time, or two portions of apps at once. For example, someone could use Word while obtaining research from the web without having to toggle back and forth between the two windows. This feature is already available in Mac.
"But part of that will also spur more cannibalization of the Mac since that is a feature the Mac has had from the very beginning," he said.
Gurman said the new iPad should come as early as this fall. However, the new function will also be available to smaller and existing iPads.