How well will mini iPad do in tablet market?

>> apple is hoping its latest gadget will be a holiday hit. the new ipad mini was unveiled tuesday with a lot of fanfare and high expectations. nbc's miguel almaguer was at the release. miguel , good morning.

>> reporter: hey, matt, good morning. most of us are familiar with the original ipad. tech experts say the mini is just a smaller version, enough though for apple to bet it will be a huge success. this is ipad mini.

>> it's the tech toy apple hopes is a must have. with a screen size under 8 inches from corner to corner, the ipad mini is the latest small product aimed at taking a big bite out of the $61 billion tablet market.

>> reporter: what's going to attract people to the ipad mini is the fact that it's smaller and easier to take around. pop it in your hearse and told with one hand, and it's also thinner.

>> as thin as a pencil and two inches smaller than the original ipad, the mini could become a game-changer because of its ability to compete with other smaller tablets already on the market. the amazon kindle and a handful of others sell for roughly $200. the mini's price tag, $329. apple 's betting its customers will pay more for apple products.

>> they surpass the idea of what a consumer wants each and every time, and they will create demand out of nothing.

>> reporter: the competition isn't folding. instead, they are trying to peg apple known for its innovation as the has been. samsung's new commercial portrays apple customers waiting in yet another long line for another product release.

>> hey, mom, dad.

>> oh, thanks for holding our spot.

>> the next big thing is already here, the samsung galaxy x3.

>> reporter: apple also unveiled upgraded products on tuesday, a notebook and desktop. the rollout comes just before microsoft releases its own set of upgrades.

>> microsoft surface tablet, windows 8, the windows phone, the ipad mini all within a single week so it's a traffic j jam.

>> this is the most personal phone experience ever created.

>> reporter: still dominating the person computing market, insiders say microsoft's move is an attempt to hold its ground in the pc world while trying to make some headway in phone and tablet sales. in an increasingly crowded technology field where the stakes are high, the competition is fierce. of course, all of these new products come just two months before christmas, a primetime season for buying and giving. matt?

>> miguel , thanks very much. we