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Redmond are going mini.Microsoft is joining the Mini Bandwagon – downsizing its 10.6″ Surface Windows 8 tablet, which will go head to head with iPad, Samsungs Note phablets that range from 5.8-8″, Galaxy Tabs, and others

Microsoft geeks are currently developing a “new suite of small touch devices powered by Windows,” CFO Peter Klein said at an investor call Friday.

The new smaller Surfaces arriving in the coming months will be sold at “competitive” prices he said, as it looks to battle mini tablet leaders including the $369 iPad mini and the slew of other Android tabs including Google Nexus, all loved for their ultra mobility and fast coming down in price.

The Wall Street Journal, informed by Microsoft sources, also reports “a 7-inch [Surface] version expected to go into mass production later this year”.

Last week, Microsoft reported rising profits of $6.06bn and revenue up 18% on the back of Windows 8, although there was some adjustments with the figures with some of the revenue deferred from Windows sales from last year.

Microsoft sold 1.5 million Surface RT and Pro models since launch, according to Bloomberg estimates last month, which also showed Apple sold over 22m iPad minis.

“While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term,” declared Steve Ballmer, CEO Microsoft, last week.

And with iPads and Samsung Notes selling like hot cakes, it better hurry up.

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