NEW DELHI: Apple hit the jackpot last year when it launched the iPad mini tablet. This smaller tablet accounts for over 60% of Apple's tablet sales now, according to data by research firm Gartner. Similar is the case with the highly popular Google Nexus 7 tablet, which sold as many as a million units a day upon launch.

However, Microsoft has stayed away from this fast-growing segment till now, focussing on products like Surface RT and Surface Pro. The two tablets have failed to make their mark in the market and even their successors have not succeeded to make waves in the industry after the global unveiling.

It is now said that Microsoft is working on a smaller Surface tablet, currently being called Surface Mini, to grab a bite of the mini tablet segment. Analysts from NPD and IHS iSuppli have said that the upcoming Microsoft tablet will have a 7.5-inch screen, positioning it between the Nexus 7 (which has a 7-inch display) and iPad mini (whose screen measures 7.9-inch in size).

It is speculated that Surface Mini will run on Windows 8.1 OS (codenamed Spring 2014 GDR) instead of Windows RT and hit the market in 2014. It is expected to be powered by an ARM chip and may feature 3G and 4G connectivity, which current Surface models do not have. There is also a rumour that Microsoft may market the Surface Mini as a gaming tablet, XBox Surface.

Microsoft made a loss of almost a billion dollars on unsold inventory of the Surface RT. It has recently bid to buy Nokia, which is also said to be working on its own range of tablets powered by Windows RT.