Microsoft is said to be developing a smaller version of its Surface tablet with a 7inch screen, which would allow it to compete head-to-head with the iPad mini.
The new mini tablet is expected to go on sale later this year and Microsoft hope it will also boost sales of the larger Surface tablet which have been somewhat disappointing to date.
According to the Wall Street Journal Microsoft bosses were not originally planning to launch a smaller tablet but the sales success of the iPad Mini, Amazon Fire HD and Google Nexus 7 inch tablet caused them to rethink their strategy.
In addition around half of the tablet computers shipped in the fourth quarter of last year were smaller than 8 inches, according to research firm IDC.
The WSJ said: “Microsoft executives have conceded publicly that consumers want less expensive touch-screen devices than Microsoft and its allies have been able to sell them.
“To make Windows 8 computing devices more appealing, they are urging a wider variety of touch-screen computers and tablets at a broader range of prices.”
Via: WallStreetJournal