The arrival of Apple's much awaited iPad Mini will be a game-changer in Malaysia's tablet landscape, providing a boost for the 7-inch tablet segment.

According to the latest IDC Worldwide Quarterly Tablet Tracker, the small tablet segment currently accounts for only 26% of the market but that is expected to grow to 45% in 2013.

"Though 7-inch tablets are expected to cannibalize larger size tablets, its lower price point makes it a more affordable proposition, which is bound to attract new consumers," said Ryan Lai, Associate Market Analyst for Client Devices at IDC Asia/Pacific.

“Appetite for smaller tablets is irrefutable and 2013 will see intensified competition in the smaller tablet space, during which Samsung's current dominance is set to be tested, particularly by Apple’s iPad Mini,” said Lai.

Samsung dominated the 7-inch tablet market for the first nine months of 2012, representing 85% of total shipments of tablets with screen sizes between 7 and 7.7 inches.

"However, Samsung accumulated its market share under conditions where little competition existed," said Lai. "The arrival of the iPad Mini at a comparable price to the US and a RM100 price drop for the Nexus 7 represents the beginnings of a more competitive 7 inch tablet space in Malaysia."

"Many enthusiasts were eagerly anticipating the launch of Asus' Nexus 7 back in September but the lack of an 8GB model and a perceived high launch price compared to the US for the 16GB model meant that many were left disappointed," continues Lai.

Q4 2012 also saw the arrival of Microsoft's touch-centric Windows 8 operating system and Daniel Pang, Research Manager for Client Devices at IDC Asia/Pacific, says "With Windows 8, Microsoft may have left users a bit shocked by the radical change to a heavy touch-driven interface. Windows 8's overall success will depend on how quickly manufacturers can roll-out devices that maximizes Windows 8's touch UI experience."

"Apple and Android are expected to continue their dominance of Malaysia's tablet space in 2013, where adoption of Windows 8 tablets will be highly dependent on the availability of tablets with comparable prices to Apple and Android," commented Lai.