WSJ says new Microsoft Surface tablets are coming including 7 inch model
A source familiar with Microsoft's plans says that a 7 inch tablet wasn't even on the company's radar last year, but executives at the Redmond based firm realized that it had no response for the lower priced Android slates and for the iOS flavored Apple iPad mini, which carries a 7.9 inch screen. Executives also have gone on the record to admit that its product lineup doesn't include a low-priced touchscreen product.
Microsoft is also continuing to test its own smartphone, according to component suppliers, but it still is unknown if the handset will ever see a public release. It is all part of what CEO Steve Ballmer calls Microsoft's shift from a software company to a "devices and services" company.