Galaxy S III mini
The Galaxy S III mini (right) is seen next to the original Galaxy S III.Reuters

Samsung reportedly took the wraps off its new Galaxy S III Mini, a compact version of their flagship smartphone Galaxy S III, bidding adieu to all rumors of its release.

With the unveiling of the new version of Galaxy S3 smartphone, the South-Korean company clear that its new device is in direct competition with Apple's iPhone 5, which also comes with a 4-inch display.

"Our biggest asset is our screen. It is very important that we make screen size bigger, and in the future mobile phones will absorb even the function of e-books," CNET quoted a Samsung executive as saying before the launch.

Galaxy S III Mini runs on Android 4.1 OS aka Jelly Bean and packs a dual-core processor clocked at 1GHz with 1GB RAM.

Reports said that the device is expected to hit the market in December. Details on pricing and availability of the device are yet to be revealed.

The earlier version of the device is powered by a quad-core processor and has an 8-megapixel camera with an array of features. The latest compact version comes with a 5-megapixel camera with auto focus, LED Flash and a front VGA camera. The mini also has NFC, WIFI and Bluetooth connectivity. The smartphone is powered by a 1,500 mAh battery and comes with 8GB or 16GB internal memory expandable up to 32GB via a microSD slot.

Galaxy S III's mini version also hosts the S Voice feature, which allows users to unlock the phone using their voice. The new device makes content sharing easy and quick with the S Beam feature.

It is 8GB or 8 Gb?

The new phone also hosts a number of features like Smart Stay that captures the user's eye movement as long as they are looking at it, and Direct Call which helps the user to automatically dial numbers while reading text messages.

According to CNet Asia, the features of Galaxy S III Mini listed on Samsung's website seemed puzzling. The website quoted the memory of the latest smartphone as 8Gb, which is quite unclear as "Gb" stands for gigabits. So it remains to be clear as how much RAM the Galaxy S III actually packs. Amid all the confusion, several reports specified it as 1GB which is equivalent to 8Gb.

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