Microsoft reportedly working on 7.5-inch $399 tablet

CNET is reporting that Microsoft is expected to launch a new tablet which will have a 7.5-inch display. Not only will this tablet be stripped in size, but will be more economically priced as well.

NPD DisplaySearch's analysts, Richard Shim, told CNET, "From the supply chain side, we're seeing the panel specifications, the touch module, the mass production schedule being made." Shim notes that the company is looking at producing "multiple millions" units and the tablet is expected to make its debut in the first quarter of 2014.

With the help of this 7.5-inch tablet Microsoft will be directly competing with Google Nexus 7 and the Apple iPad mini.

Microsoft's 7.5-inch tablet will allegedly have a resolution of 1400X1050 pixels and a pixel density of 233 pixels per inch, which is higher than the one being offered by Nexus 7 and current generation iPad mini.

Shim also goes on to claim that Microsoft is working hard to keep the pricing of this tablet economical. Furthermore, Microsoft is also said to be in process of shifting its panel suppliers for all tablet screen sizes in a bid to keep the price of the tablet affordable.

However, NPD DisplayResearch has not revealed what exactly will be price for this 7.5-inch tablet. CNET from its sources has learnt that the company has set a target of $399 for this tablet and will possibly try to offer at a lower price pint once the tablet goes into mass production.

Currently, Microsoft is offering the 32GB variant of its Surface tablet for $499.

Earlier in the month, there were news reports that Microsoft is developing a new line-up of Surface tablets, including a 7-inch version expected to go into mass production later this year.