Apple's iPad mini 2 is not released yet but it is already facing some stiff competition. Several tech manufacturers like Acer, Lenovo, Asus and Dell are gearing up to release 8-inch Android-powered tablets. Apple will have to deal with more Android competitors in the third quarter.

"Supply chain indications point to production of Android-based tablet PCs with 8-inch, 1280 x 800 displays in Q3'13. Brands including Acer, ASUS, Dell and Lenovo are expected to release 8-inch tablet PCs." Richard Shim, NPD DisplaySearch analyst, explained.

Shim also said in his forecasts that tablets with smaller displays will account for more than 60 percent of the shipment for this year. With the pending release of the iPad mini 2 and other new 8-inch tablets, the percentage of these tablets is expected to increase past Q4 of 2013.

Shim added, "These new tablet PCs are part of a trend in the tablet PC market that is balancing between differentiation between increasingly larger smartphones and an expansion of the tablet PC opportunity to further drive adoption."

Currently, 9-inch tablets and similar devices have dominated the tablet market. More than 60 percent of these devices were shipped in 2012 alone. Nonetheless, analysts are betting on smaller tablets to take the larger percentage of the market especially shipments.

Notebook PC shipments is suffering a decline due to the newest players on the market. Companies are also refocusing their strategies to cater better to consumer demands. Analysts point out that despite the shifting nature of the market; it is the release of the 7.9-inch iPad mini which prompted companies to really consider smaller tablets.

"Apple's iPad mini...has captured a significant share of the market...Brands are hoping to expand this 'middle class,' gaining some share and slightly better margins than 7-inch tablet PCs," Shim said.