The launch of the iPad mini in late 2012 has been seen as an acknowledgement by Apple that smaller size (7-9”) tablet PCs would become a larger part of the market than larger sizes (9.7” or 10.1”). Key aspects are more attractive prices and the ability to hold the device in one hand rather than two.
Pretty sure David has the logic backwards on this one. Apple didn’t make the iPad Mini because the smaller tablets are taking over – smaller tablets are taking over because Apple made an iPad Mini. Just look at Apple’s tablet-making competitors: their sales aren’t even coming close to Apple’s numbers.