Nokia (NYSE: NOK) just unveiled its Lumia 2520 tablet, but the company may have more in store. New rumors suggest that Nokia is preparing to enter the small-sized tablet market with an 8-inch Lumia device that's very similar to the larger version. This device is expected to run Microsoft (NASDAQ: MSFT) Windows RT and be powered by a Qualcomm processor. Apple has shown that the 8-inch form factor can be quite compelling, judging by its success with the iPad Mini. There are now two distinct segments of the market, and tablet players are wise to target both smaller and larger devices accordingly. 

The smaller Lumia tablet is expected to be released early next year, which roughly coincides with Microsoft's hopes to acquire Nokia's devices division. Meanwhile, Microsoft is also probably working on a Surface Mini of its own to address the smaller-sized segment. If everything turns out to be true, Microsoft will have two different Lumias and three different Surface tablets under its roof in the near future.

In this segment of Tech Teardown, Erin Kennedy discusses the latest Nokia tablet rumor with Evan Niu, CFA, our tech and telecom bureau chief. 

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Erin Kennedy owns shares of Apple. Evan Niu, CFA, owns shares of Apple and Qualcomm. The Motley Fool recommends Apple and owns shares of Apple, Microsoft, and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.