What should you do if the market is over-saturated with 7-inch, 8-inch, 9-inch and 10-inch tablets? Why, make a new market segment, of course! This is exactly what Samsung and Apple are rumored to be doing as the two companies shift their eyes towards tablets that are 12 inches or larger.

Samsung and Apple are both planning on creating a new market segment to turn competition away from smaller devices like smartphones and towards devices even larger than the usual 10-inch tablets today. According to sources, this change in tactics is due to a drop in the global shipment of tablets, as indicated in IDC’s latest quarterly report.

As the demand for smartphones and tablets collide, Samsung believes that consumers will prefer smartphones and sees this as a writing on the wall. The company will instead focus on competing with the netbook industry, where sizes range from 10 to 13 inches. Apple won’t be able to make such a quick change though, as large tablets could directly compete with and maybe even supplant its own MacBook Air devices.

Sources also say that other vendors aren’t willing to join in just yet. After being burned by low sales of 9- and 10-inch tablets, they aren’t ready to take big risks again and might prefer to wait for the big players to make their move first and see if it all works out.