Apple iPad mini vs Google Nexus 7
Though Steve Jobs is famously known to have disliked the idea of 7-inch tablets, you can't deny that there is a market for them. A 7-incher, such as the Google Nexus 7 (made by ASUS), is a whole lot more portable than larger 10-inch tablets and provides the same ebook reading and multimedia consumption experience as larger tablets do. It can easily fit in your hand, in your jacket pocket, and in your bag without your looking awkward in public.
Naturally, Apple doesn't want to be left out of that market