Apple is prepping the 'iPad Air 3' for a March launch

Apple is likely to update the iPad Air in March, according to a report Wednesday from 9to5Mac's Mark Gurman.

The "iPad Air 3," as the device is likely to be named, may include support for Apple Pencil, the stylus introduced alongside the larger, professionally-oriented iPad Pro last year. The refresh would be the first time that Apple's 9.7-inch tablet has received an update since 2014.

Gurman adds that Apple is likely to launch a 4-inch iPhone and new Apple Watch accessories at the same event. While the report is based on anonymous sources, Gurman is a well-respected Apple blogger with a strong track record who has nailed pre-release details about Apple products in the past.

Although Apple sold 16.1 million iPads in its last holiday quarter, sales of the tablet have been shrinking dramatically in recent years. For example, Apple sold 24.4 million iPads in the 2014 Holiday quarter.

Apple attempted to change the trend by introducing the iPad Pro last fall, but the iPad business ended up contracting anyway. However, the device was expensive compared to other tablets, with a starting price of $799, and only went on sale in November.