There could be something to that rumor in light of a leak that took place today, on the Microsoft Surface website. A leaked user guide for the Microsoft Surface Pro 3 made some references to the Microsoft Surface Mini, even though Microsoft had never confirmed the existence of the bite-sized slate, until now, that is.
One section of the Surface Pro 3's user guide, dealing with the Surface Pen, said, "You’ll pair your new pen with Surface Mini a little later during setup." That would seem to officially confirm that the Microsoft Surface Mini does exist. Speculation as to the reason for Microsoft's decision to pull the tablet are numerous. According to one rumor, Satya Nadella, and Stephen Elop, Microsoft's CEO and Executive Vice President respectively, felt that there was no difference between the Surface Mini and the competition. That led the executives to doubt that the tablet would be a hit. And the pair did not want to risk a repeat of what took place with the Microsoft Surface RT. That tablet sold so poorly that Microsoft had to write-off $900 million worth of unsold tablets, collecting dust in a warehouse.
While the references to the Surface Mini in the Surface Pro 3 User Guide does confirm that such a tablet exists, it does not prove whether or not Microsoft will give the device a second opportunity to see the light of day. We should point out that Microsoft has since removed all references to the Surface Mini from the leaked user guide.
source: MicrosoftSurface via @thurrott, MobileSyrup