As phablet makers stretch smartphone screens to the limit, they unwittingly encroach into the small tablet territory and soon enough they could dislodge the likes of the iPad Mini and Nexus 7 from the top, a new report said.

Looking into the current market trend, it's easily noticeable that phablets are breaching the 6-inch mark following the 4.7-inch Galaxy S3 and the 5.5-inch Galaxy Note 2 that Samsung has introduced in 2012.

For 2013, Samsung appears getting bolder with its armada of mid-range phablets, led by the 6.3-inch Galaxy Mega and the 5.7-inch variant. By September, the Galaxy Note 3, likely sporting a screen size of between 5.7-inch and 6-inch, will jump into the fray, which should further define the sub-market that the South Korean tech giant has created in 2011.

Back then, Samsung's first Galaxy Note was met with routine ridicule but consumers ignored the experts and the first phablet sold in millions, which the second edition improved into tens of millions in unit sales, setting off a race that likely Apple will soon join via the rumoured iPhone 6.

And tablet makers are taking notice, according to DigiTimes.

Sony is coming up with the Xperia Z Ultra and HTC will supersize the HTC One through the HTC One Max. China's Huawei is pushing the Ascend Mate into the tightening phablet competition and all three devices have one thing in common - they beam out clips and images and allow web surfing through viewing windows beyond six inches.

The Taiwanese publication noted that these players are "first-tier brand vendors ... (and) sources from the tablet sector are concerned that (their) devices may create new competition for tablets."

The report makes sense considering that most of these oversized smartphones are priced between $500 and $600 unlocked, which is a just few hundred more compared to compact tablets that offer less features, chief of which is the ability to make and receive phone calls.

These phablets also offer the benefit of wielding a not-too-big gizmo that fuses all the popular features of smartphones and tablet computers. It is hardly surprising that for many gadget shoppers, specifically those looking to maximise the value of their money, the choice is easier - it's phablet for them over the iPad Mini 2 and the Nexus 7.

Now the biggest fear of small tablet makers is the likelihood that in the near future, telcos around the world will start picking up these hulking Android phablet, which will make them more affordable and therefore more attractive to consumers.

"6-inch smartphones will undermine tablet demand the most if they are bundled with telecom packages, since such devices are also able to satisfy consumers' needs that 7-inch tablets can offer," DigiTimes said on its report.