Correlation
Remember that sales of modules does not always correlate to sales out at retail and sales out does not always correlate to profit!
Shipments of 7in LCD screens surpassed those of 9.7in panels in November, it has been claimed. You can read that one of two ways. Either the combined sales of Amazon's Kindle Fire, Barnes & Noble's Nook, RIM's BlackBerry PlayBook - not a big contribution there, natch - et al, are exceeding those of Apple's iPad - pretty much …
Smaller tablets are also a lot more portable, my 8" Archos G9 is 2/3rds the weight and size of an iPad2, but has the same screen resolution, it's a difference for me that makes it much more comfy to hold for long periods and means that in my hands a thumb can cover half a screen making 2 handed use quite natural.
Plus of course, it was half the price for a 3G capable device. Sure it's plastic not aluminium, but I'm not a stylish guy, an iPad ain't gonna make up the slack.
I had an Asus Transformer tablet first. Beautiful piece of kit but so expensive.
I then got a smaller Kogan tablet direct from them for £80. Works beautifully, much more compact and manageable, fits in the pocket far easier rather than carrying it in a special carry case, and at that price I don't care if I drop it or sit on it.
Well, the two primary 7-inch tablets mentioned above, the Fire and the Nook Tablet, were both released in November, so of course there are going to be more shipments than usual as they stock up stores for the first time. Also there will be more consumer interest in models that are brand new (especially the overhyped Kindle Fire, which even elderly, non-tech people have asked me about at work). 6 months from now, I doubt this will be the case.
Jobs poo-pooed the smaller screen when he introduced his large screen prior art tablet four months after the Chinese had 3D 7" models selling at retail. The ones I bought are still functional.
My employer has now sold eleven companies in the Indochina region all based on 7" format. Five of the companies bought some larger screened devices but almost all our clients preferred the smaller screens as they could be put in an overalls pocket; used inside machinery by maintenance staff, etc. One customer has given all their bus mechanics 7" units and another is an electric grid system operator.
I've had 7" units both my 4-wheeled vehicle as well on my motorcycle and the contrast is more than adequate even in bright sunny areas. And now the Samsung Tab 7 is here with a full range of accessories!