The new iPad received a mixed reaction, with shares in Apple falling following concerns about the price. The iPad Mini will sell for between £269 and £429, more than £100 more expensive than the Kindle Fire and the cheapest version of Google's Nexus.
Apple has established itself as the biggest company in the world thanks to the success of the iPad and iPhone.
Microsoft has called its Surface tablet "absolutely critical" because of the growing size of the booming tablet market.
The Surface tablet will run on Windows 8, the latest version of Microsoft's flagship software which, for the first time, has been designed for tablets and smartphones, rather than just desktop PCs and laptops.
Bill Gates, the co-founder and chairman of Microsoft, said the tablet is a "big step" for the company.
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