Microsoft was supposed to launch a Surface Mini alongside the Surface Pro 3 in May, but the company reportedly called off plans to mass produce the smaller tablet in May.
Quoting information from sources in the upstream supply chain, DigiTimes stated that Microsoft had little confidence in the ability of the Surface Mini to compete in the small tablet market segment. In addition, "negative responses from its brand vendor clients" deterred Microsoft from going ahead with its initial plan.
DigiTimes - "Microsoft has finished developing the Surface Mini and also completed the product tests; however, mass production did not start as scheduled in May, the sources said, adding Microsoft still paid the costs for the module development and production equipment, the sources said."
The Surface Mini is alleged to sport a 7.5 to 8-inch display and runs on an ARM processor with Windows RT 8.1. It was said that Microsoft decided to postpone the launch and may not even bring it to the market at all.
It may turn out to be a wise decision for Microsoft as the small tablet market segment is set to enter a price war when Xiaomi starts selling its 7.9-inch Mi Pad in the coming months. Moreover, Android vendors such as Huawei, LG and Samsung are very aggressive this year. It would be an uphill battle for the Surface Mini if Microsoft plans to tackle this market segment.